You are on page 1of 120

LAWS OF MALAYSIA

ONLINE VERSION OF UPDATED


TEXT OF REPRINT

Act 378

STAMP ACT 1949


As at 1 May 2013

STAMP ACT 1949

1949 (F.M. Ordinance


No. 59 of 1949)

1989 (Act 378 w.e.f.


2 January 1990)

Latest amendment made by


Act 755 which came
into operation on

11 January 2013

First Enacted

Revised

PREVIOUS REPRINTS
First Reprint

2001

Second Reprint

2006

3
LAWS OF MALAYSIA

Act 378

STAMP ACT 1974


ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY
Section

1.

Short title and application

2.

Interpretation

3.

Collector and Deputy Collectors of Stamp Duties

3A.

Powers of Collector

PART II
PROVISIONS APPLICABLE TO INSTRUMENTS
GENERALLY
Liability of Instruments to Duty
4.
4A.

Instruments chargeable with duty


Stamp duty on instruments executed outside Malaysia effecting transfers of
property in Malaysia
Payment of Duty

5.
5A.
6.

All facts and circumstances to be set out


(Deleted)
Instrument relating to distinct matters

Laws of Malaysia

ACT 378

Section

7.

Mode of paying and denoting duty

8.

Franking of certain instruments

9.

Authorized person to compound instrument

10.

How instruments are to be written and stamped

11.

Where duty chargeable depends on duty paid on another instrument

11A.
12.

Replica
Duplicate and counterparts

Valuation for Duty


12A.

Assessment of the value of property under transfer or settlement

13.

Currency and securities

14.

Instruments reserving interest

14A.

Principal securities in syariah financing

PART III
PROVISIONS APPLICABLE TO PARTICULAR
INSTRUMENTS
15.
15A.

Relief from stamp duty in case of reconstructions or amalgamations of


companies
Relief from stamp duty in case of transfer of property between associated
companies

16.

Voluntary conveyance inter vivos

17.

How transfer for debts, stocks, securities, future payment and further
consideration to be charged

18.

Duties on foreclosure orders

19.

Valuation in case of annuity

20.

Direction as to duty in case of certain conveyances

20A.

Exchange of real property

20B.

Vesting or transfer of an undivided interest in property

Stamp
Section

21.

Certain contracts to be chargeable as conveyances on sale

22.

Sale of annuity or right not before in existence

23.

What is to be deemed a conveyance, not being a sale or mortgage

24.

Leases, how to be charged in respect of produce, etc.

25.

Directions as to duty upon leases, etc

26.

Direction as to duty upon transfer of stock

27.

(Deleted)

28.

Security for future advances, how to be charged

29.

(Deleted)

29A.

Directions as to duty upon a primary or principal security

30.

Directions as to sea policy

31.

Legal alteration in sea policies may be made

32.

Directions as to certain contract notes

32A.

Obligation to execute contract note

PART IV
LIABILITY FOR PAYMENT OF DUTY
33.

Duty by whom payable

34.

(Deleted)

35.

Exemptions

PART V
ADJUDICATION AS TO STAMPS
36.
36A.
36AA.
36B.

Mode of adjudication as to proper stamp


Initial duty
Advance duty
Additional duty

Laws of Malaysia

ACT 378

Section

36C.

Where duty chargeable is equal or lower than advance duty paid and
refund of advance duty paid in excess

37.

Certificate by Collector

38.

Exception to sections 36, 36A, 36AA, 36B, 36C and 37

38A.

Notice of objection

39.

Appeal to High Court

40.

Time of stamping after adjudication

PART VI
OF THE TIME OF STAMPING INSTRUMENTS
41.

Instruments executed in Malaysia

42.

Instruments executed out of Malaysia

43.

Bills, cheques or notes drawn out of Malaysia

44.

Bills of exchange and cheques accepted or payable outside Malaysia

45.

Power of drawee to stamp bills or cheques

46.

Transfers of shares

47.

Stamping of instruments after execution

47A.

Penalty for late stamping

48.

Denoting penalty

49.

Persons liable to penalty

50.

Penalty, how recoverable

50A.

Error in assessment, etc.

PART VII
INSTRUMENTS NOT DULY STAMPED
51.

Examination and impounding of instruments

52.

Instruments not duly stamped inadmissible in evidence

Stamp

Section

53.

Instruments impounded how dealt with

54.

(Deleted)

55.

Agreements evidenced by letters how stamped

56.

Recovery of duty and penalty

PART VIII
ALLOWANCE FOR SPOILED STAMPS
57.

Allowance for spoiled stamps

58.

Allowance for misused stamps

59.

Allowance, how to be made

59A.

Stamp to include official receipt

PART IX
OFFENCES AND PENALTIES
60.
60A.

Not cancelling adhesive stamps


Failure to frank documents

61.

Penalty for not setting forth all the facts and circumstances

62.

(Deleted)

63.

Penalty for executing and signing documents not duly stamped

64.

Penalty for failure to execute and transmit contract note

65.

Penalty for post-dating bills

66.

(Deleted)

67.

Penalty for not making out policy other than on sea insurance or making one
not duly stamped

68.

Penalty for assuring on sea insurance unless under policy duly stamped

69.

Penalty for issuing share warrant, etc., not duly stamped

70.

(Deleted)

71.

Penalty for unauthorized dealing in stamps

Laws of Malaysia

ACT 378

Section
Section

72.
72A.

Penalty for hawking stamps


Penalty relating to stamp certificates

73.

Postage stamps

74.

Fraud in relation to duty

74A.

Recovery from persons leaving Malaysia

74B.

Leaving Malaysia without payment of duties, etc.

75.

Institution and conduct of prosecution


PART X
MISCELLANEOUS

76.

Books, etc., in the custody of public officers may be inspected without fee

77.

Collector may administer oaths

77A.

Electronic medium

77B.

Electronic assessment and stamping of instruments

78.

Revision of acts of Collector

79.

Responsibility for loss or damage

80.

Power to exempt, reduce or remit duties

80A.

Fund for Tax Refund

81.

Power to compound duties in case of issue of bonds, etc.

82.

Rules

83.

Repeal
FIRST SCHEDULE
SECOND SCHEDULE
THIRD SCHEDULE
FOURTH SCHEDULE
FIFTH SCHEDULE
SIXTH SCHEDULE

9
LAWS OF MALAYSIA
Act 378
STAMP ACT 1949
An Act relating to stamp duties.
[Peninsular Malaysia 5 December 1949;
Sabah and Sarawak 1 October 1989, P.U. (B) 441/1989]

PART I
PRELIMINARY
Short title and application
1. (1)
(2)

This Act may be cited as the Stamp Act 1949.


This Act shall apply throughout Malaysia.

Interpretation
2. In this Act, unless the context otherwise requires
banker means any person licensed under the Islamic Banking Act
1983 [Act 276] or the Banking and Financial Institutions Act 1989
[Act 372] to carry on the business of banking in Malaysia;
bond means
(a) any instrument whereby a person obliges himself to pay
money to another on condition that the obligation shall be
void if a specified act is performed or is not performed, as
the case may be;

10

Laws of Malaysia

ACT 378

(b) any instrument, attested by a witness and not payable to


order or bearer, whereby a person obliges himself to pay
money to another;
charge means any instrument whereby, for the purpose of
securing the payment of any definite and certain sum of money
advanced or lent at the time or previously due or foreborne to be paid
or for the repayment of money to be thereafter lent, advanced or paid,
or which may become due upon any account current, together with
any sum already advanced or due, or without, as the case may be, or
for the performance of any contract or engagement, one person
creates a right over or charge upon any specified property; and
includes any instrument which purports to create or in which any
person agrees to create any such right or charge;
cheque means a bill of exchange drawn on a specified banker and
not expressed to be payable otherwise than on demand;
Collector includes the Collector of Stamp Duties and every
Deputy Collector of Stamp Duties appointed under section 3;
continuation clause in a policy of sea insurance made for time
means an agreement to the following or the like effect, namely, that
in the event of the ship being at sea or the voyage otherwise not
completed on the expiration of the policy, the subject matter of the
insurance shall be held covered until the arrival of the ship, or for a
reasonable time thereafter not exceeding thirty days;
contract note means the note sent by a dealer or agent to his
principal, or by any person who by way of business deals, or holds
himself out as dealing, as a principal in any stock or marketable
securities, advising the principal, or the vendor or purchaser, as the
case may be, of the sale or purchase of any stock or marketable
security, but does not include a note sent by a dealer or agent to his
principal where the principal is himself acting as dealer or agent for a
principal and is himself a person who bona fide carries on the
business of a dealer in Malaysia;

Stamp

11

conveyance on sale includes every instrument and every decree


or order of any Court, whereby any property, or any estate or interest
in any property, upon the sale thereof is transferred to or vested in a
purchaser or any other person on his behalf or by his direction;
dealer means any person licensed under the Securities Industry
Act 1983 [Act 280] to carry on the business of dealing in securities in
Malaysia and is recognized as a member company by a stock
exchange;
die includes any plate, type, tool or implement whatever used
under the direction of the Collector for expressing or denoting any
duty or rate of duty, or the fact that any duty or rate of duty or penalty
has been paid, or that an instrument is duly stamped, or is not
chargeable with any duty or for denoting any fee, and also any part of
any such plate, type, tool or implement;
duly stamped, as applied to an instrument, means that the
instrument bears an adhesive or impressed stamp of not less than the
proper amount or the amount of initial duty or the amount of advance
duty paid under subsection 37(1) and that such stamp has been
affixed or used in accordance with the law for the time being in force:
Provided that a stamp certificate or official receipt for the proper
amount or amount of initial duty or amount of advance duty may be
attached or affixed to any instrument in lieu of the stamp, and the
instrument shall be deemed to be duly stamped;
duty means any stamp duty for the time being chargeable under
this Act or under any written law;
equitable mortgage means an agreement or memorandum, under
hand only, relating to the deposit of any title deeds or instruments
constituting or being evidence of the title to any property whatever
(other than stock or marketable securities and a letter of
hypothecation), or creating a charge on such property but does not
include a registered charge on land in any State;
executed and execution, used with reference to instruments not
under seal, mean signed and signature;

12

Laws of Malaysia

ACT 378

foreign currency loan means any loan denominated wholly in


currencies other than the Ringgit;
impressed stamp means a stamp impressed by means of a die, or
an adhesive stamp over which an impression, denoting the date of
such impression, has been made by the proper officer by means of a
die;
instrument includes every written document;
insurer means any person licensed under the Takaful Act 1984
[Act 312] or the Insurance Act 1996 [Act 513] to carry on an
insurance business in Malaysia and includes a reinsurer;
lease means a lease of immovable property, and includes
(a) any undertaking in writing to cultivate, occupy, or pay or
deliver rent for, immovable property;
(b) any instrument by which tolls, rents or profits of any
description are let to farm;
(c) any writing on an application for a lease intended to
signify that the application is granted;
letter of hypothecation means any instrument creating a pledge or
lien over goods in consideration of moneys advanced or to be
advanced or to secure the payment or repayment of moneys;
marketable security means a security of such a description as to
be capable of being sold or negotiated in any stock market in
Malaysia or elsewhere;
money includes all sums whether expressed in the ringgit or in
any other currency;
mortgage means a security by way of mortgage for the payment
of any definite and certain sum of money advanced or lent at the
time, or previously due or foreborne to be paid, being payable, or for
the repayment of money to be thereafter lent, advanced or paid, or

Stamp

13

which may become due upon an account current, together with any
sum already advanced or due, or without, as the case may be; and
includes
(a) any conveyance of any property in trust to be sold or
otherwise converted into money intended only as a
security, and redeemable before the sale or other disposal
thereof either by express stipulation or otherwise;
(b) any instrument in writing for defeating or making
redeemable, or explaining or qualifying any conveyance
of property, apparently absolute, but intended only as a
security;
(c) any agreement for a mortgage or any agreement (other
than an agreement chargeable with duty as an equitable
mortgage), contract, or bond accompanied with a deposit
of title deeds or with other instruments evidencing a right
to property, for making a mortgage or any other security
or conveyance as aforesaid of any property comprised in
the title deeds or other instruments or for pledging or
charging the same as a security; and
(d) any deed operating as a mortgage of any stock or
marketable security;
official receipt means a receipt issued by or on behalf of the
Collector for payment of stamp duties;
paper includes every material upon which words or figures can be
expressed;
policy of insurance includes every writing whereby any contract
of insurance is made or agreed to be made or is evidenced, and the
expression insurance includes assurance;
policy of sea insurance
(a) means any insurance, including re-insurance, made upon
any ship or vessel, whether for marine or inland

14

Laws of Malaysia

ACT 378

navigation, or upon the machinery, tackle or furniture of


any ship or vessel or upon any goods, merchandise or
property of any description whatever on board of any ship
or vessel or upon the freight of or any other interest which
may be lawfully insured in or relating to any ship or
vessel; and
(b) includes any insurance of goods, merchandise or property
for any transit which includes, not only a sea risk under
paragraph (a), but also any other risk incidental to the
transit insured from the commencement of the transit to
the ultimate destination covered by the insurance;
power of attorney means any instrument except a warrant to act
as a solicitor in any judicial proceeding, empowering a specified
person to act in the stead of the person executing it;
promissory note means any document or writing (except a bank
note) containing a promise to pay any sum of money and includes a
note promising the payment of any sum of money out of any
particular fund which may or may not be available or upon any
condition or contingency which may or may not be performed or
happen;
property includes movable or immovable property and any estate
or interest in any property movable or immovable, whether in
possession, reversion, remainder or contingency, and any debt, and
anything in action, and any other right or interest in the nature of
property which is capable of being disposed of and has a value in it;
settlement means any non-testamentary disposition in writing
whether made voluntarily or upon a good or valuable consideration
other than a bona fide pecuniary consideration whereby any definite
and certain property is settled or agreed to be settled in any manner
for any purpose whatsoever;
small and medium enterprise means

Stamp

15

(a) in relation to the manufacturing, manufacturing related


services and agro-based industries sectors, an enterprise
with full-time employees not exceeding one hundred and
fifty people or annual turnover not exceeding twenty-five
million ringgit; and
(b) in relation to the services, primary agriculture, and
information and communication technology sectors, an
enterprise with full-time employees not exceeding fifty
people or annual turnover not exceeding five million
ringgit;
stamp certificate means a certificate that is issued electronically
in respect of any instrument chargeable with duty denoting the
amount of duty paid in respect of that instrument;
stock includes any share in the capital stock or funded debt of any
corporation, company or society in Malaysia or elsewhere and any
share in the stocks or funds of the Government of Malaysia or of any
other Government or country;

Collector and Deputy Collectors of Stamp Duties


3. (1) The Director General of Inland Revenue referred to in
subsection 134(1) of the Income Tax Act 1967 [Act 53] shall be the
Collector of Stamp Duties.
(2) The Minister of Finance may, by notification in the Gazette,
appoint such number of Deputy Collectors of Stamp Duties as he
thinks fit, for the purpose of carrying out the provisions of this Act.

Powers of Collector
3A. (1) The Collector may by notice in writing require any person
to produce any instrument for the purpose of ascertaining whether it
is chargeable with duty under this Act and, if so, whether that duty
has been paid.

16

Laws of Malaysia

ACT 378

(2) The Collector shall, if he considers it necessary in the


execution of his duties under this Act, at all times have full and free
access to all lands, buildings and places, and all books and
documents, whether in the custody or under the control of a public
officer or a body corporate or any other person whatsoever, for the
purpose of ascertaining the market value of any property or of
ascertaining any facts or inspecting any books or documents which
the Collector considers necessary or relevant for the purposes of this
Act, or considers likely to provide any information otherwise
required for the purposes of this Act, and may, without fee or reward,
make extracts from or copies of any such books or documents.
(3) The Collector may take possession of any such books or
documents where in his opinion
(a) the inspection or copying thereof or extraction therefrom
cannot reasonably be performed without taking possession
thereof;
(b) the books or documents may be interfered with, concealed
or destroyed unless possession thereof is taken; or
(c) the books or documents may be required as evidence in
any proceeding instituted or commenced under or for any
of the purposes of this Act.
(4) For the purpose only of ascertaining the market value of any
property, the Collector may in writing authorise any valuer employed
by the Government, whether he be a public officer or a person
privately practising as a valuer, to exercise any of the powers
conferred upon the Collector by this section.
(5) Any person who obstructs or hinders the Collector, or any
valuer duly authorized by the Collector, in the exercise of any of his
powers under this section, or who refuses or fails to comply with a
notice under subsection (1) or with any direction given in good faith
by the Collector or any such valuer for any of the purposes of this

Stamp

17

section, shall be liable to a fine not exceeding two hundred and fifty
ringgit.

PART II
PROVISIONS APPLICABLE TO INSTRUMENTS
GENERALLY
Liability of Instruments to Duty
Instruments chargeable with duty
4. (1) Subject to this Act and subject to the exemptions contained
in this Act and in any written law for the time being in force, the
several instruments specified in the First Schedule shall, from and
after the commencement of this Act, be chargeable with the several
duties specified in such Schedule.
(2) Nothing in this Act shall render liable to additional duty any
instrument whereon duty is expressly imposed under any other
written law in force in Malaysia.
(3) Where in the case of any sale, lease, charge, settlement,
exchange or partition several instruments are employed for
completing the transaction, the principal instrument only shall be
chargeable with the duty prescribed in the First Schedule for the
conveyance, lease, charge, settlement or partition and each of the
other instruments shall be chargeable with a duty of ten ringgit only;
and the parties may determine for themselves which of the
instruments so employed shall, for the purpose of this subsection, be
deemed to be the principal instrument.
(4) The duties imposed by such Schedule may be cancelled,
varied or added to by a resolution of the House of Representatives.

18

Laws of Malaysia

ACT 378

Stamp duty on instruments executed outside Malaysia effecting


transfers of property in Malaysia
4A. (1) Any instrument executed outside Malaysia and purporting
to effect a transfer of any immovable property, or of any movable
property other than debentures issued by, or shares in, a company,
shall, if the property intended to be transferred is situated in any part
of Malaysia, be chargeable with stamp duty in accordance with the
First Schedule, and unless the instrument of transfer, or a counterpart
or duplicate thereof which shall be chargeable with the like duty as if
it were the original, is brought into Malaysia and the proper stamp
duty payable thereon as if the original had been executed in Malaysia
is paid, the transfer shall not take effect.
(2) Where any instrument executed outside Malaysia and
purporting to effect a transfer of debentures issued by, or shares in, a
company incorporated in Malaysia under section 16 of the
Companies Act 1965 [Act 125] or a foreign company registered in
Malaysia under section 332 of that Act is produced or delivered to the
company for registration, in the case of a company incorporated in
Malaysia, in a register of debenture holders or a register of members
of the company kept in Malaysia in pursuance of section 70 or 158 of
that Act or, in the case of a foreign company, in a branch register of
the foreign company kept in Malaysia in pursuance of section 342 of
that Act, the company or foreign company shall, unless the
instrument of transfer bears a stamp, duly cancelled in accordance
with this Act, showing
(a) that the proper stamp duty has been paid thereon in
accordance with the First Schedule; or
(b) such other evidence of payment of the proper stamp duty
as this Act may allow,
refuse to register the transfer and the transfer shall not take effect.
(3) Where any instrument of transfer of any of the descriptions
mentioned in subsection (2) is registered otherwise than in

Stamp

19

accordance with that subsection, the company or foreign company


and the officer of the company or foreign company responsible for
making the entry in the register shall be liable to a fine not exceeding
two hundred and fifty ringgit.
(4)

In this section
(a) (Omitted);
(b) expressions which are defined in the Companies Act 1965
shall have the same meaning as in that Act.

Payment of Duty
All facts and circumstances to be set out
5. All the facts and circumstances affecting the liability of any
instrument to duty or the amount of the duty with which any
instrument is chargeable are to be fully and truly set forth in the
instrument, and the Collector may require such evidence to be
furnished as may be reasonably necessary to prove that all such facts
and circumstances are truly set forth.

5A. (Deleted by Act 661).

Instrument relating to distinct matters


6. Except where express provision to the contrary is made by this
Act or by any other written law
(a) an instrument containing or relating to several distinct
matters shall be separately and distinctly charged, as if it
were a separate instrument, with duty in respect of each of
the matters;
(b) an instrument made for any consideration in respect of
which it is chargeable with ad valorem duty, and also for

20

Laws of Malaysia

ACT 378

any further or other valuable consideration or


considerations, shall be separately and distinctly charged,
as if it were a separate instrument, with duty in respect of
each of the considerations.

Mode of paying and denoting duty


7. (1) Subject to any rules made under paragraph 82(b), all duties
with which any instruments are chargeable under this Act shall be
paid, and payment shall be indicated on such instrument by
(a) means of an adhesive stamp;
(b) affixing an official receipt to such instrument; or
(c) attaching a stamp certificate to such instrument.
(2) Where duty is required to be paid or indicated by means of an
adhesive stamp, such stamp shall be a revenue stamp issued under
this Act for the payment of stamp duty, which, at the time the duty is
to be paid or indicated, is a valid revenue stamp.
(3) Stamps used for any of the instruments described under any of
the articles in the First Schedule and not included in the Second
Schedule shall, and stamps used for any of the instruments described
under any of the articles in the Second Schedule may, be cancelled as
follows: The instrument, or the paper on which it is proposed to be
written, shall be taken to the office of the Collector and the stamp
shall there be cancelled by having the words Stamp Office with the
name of the district and the date written or printed partly on the stamp
and partly on the paper to which the stamp is affixed.
(4) Stamps used for any of the instruments described under any of
the articles in the Second Schedule shall, unless cancelled in the
manner provided in the last preceding subsection, be cancelled as
follows: Whoever affixes any such stamp to any instrument
chargeable with duty and which has been executed by any person

Stamp

21

shall, when affixing such stamp, cancel the same by writing or


marking distinctly the date in ink either wholly on the stamp or partly
on the stamp and partly on the paper to which the stamp is affixed, or
in such other manner as the Minister of Finance may from time to
time direct, so that the stamp cannot be used again, and whoever
executes any instrument on any paper bearing a stamp shall at the
time of execution, unless such stamp has been already cancelled in
the manner aforesaid, cancel the same in the manner aforesaid so that
it cannot be used again.
(5) Any instrument bearing a stamp which has not been so
cancelled in the manner prescribed in this section that it cannot be
used again shall, so far as such stamp is concerned, be deemed to be
unstamped.
(6) Where two or more stamps are used to denote the stamp duty
on any instrument, each and every stamp shall be cancelled in the
manner prescribed in this section.
(7) In the case of instruments specified in the first column of the
Second Schedule, the persons mentioned in the second column of the
said Schedule are the persons required, subject to subsection (3), to
cancel the stamps.
(8) The Second Schedule may be amended by the Minister of
Finance by order published in the Gazette.

Franking of certain instruments


8. (1) Notwithstanding anything contained in this Act, it shall be
lawful for the Minister of Finance by licence under his hand to
authorise any person to pay the duty on any of the instruments
specified in the Fifth Schedule by means of a postal franking machine
or digital franking machine.
(1A) The Fifth Schedule may be amended by the Minister of
Finance by Order published in the Gazette.

22

Laws of Malaysia

ACT 378

(2) A licence issued under this section shall be subject to such


conditions as the Minister of Finance may in his absolute discretion
impose.
(3) The issue of a licence under this section shall be notified
by publication in the Gazette.
(4) Every impression indicating the payment of duty made by
a postal franking machine used under licences under this section shall
contain the true date of the making of such impression.
(5) The franking of any of the above-mentioned instruments by
any duly authorized person as provided for in this section, if done in
accordance with the terms of this section and of the licence, shall
have the same effect as cancelling an adhesive stamp on the date and
to the value indicated by such franking.
(6) The Collector or any person authorized by him in writing
may, at all reasonable times, inspect any books, records and
documents kept by him in connection with the issue of such licence.
(7) For the purpose of subsection (6), the authorized person
shall keep and retain the books, records and documents in connection
with the issue of such licence for a period of seven years from the
year in which such licence is issued.
(8) Any authorized person who fails to comply with the
conditions imposed in the licence under subsection (2) shall be liable
to a fine of not less than four thousand ringgit and not more than ten
thousand ringgit.

Authorized person to compound instrument


9. (1)

Subject to this section, Collector may authorize


(a) any banker, dealer or insurer to compound for the
payment of duty on unstamped cheques, contract notes or

Stamp

23

policies of insurance drawn or drawn up and issued on


forms to be supplied or adopted by the said banker, dealer
or insurer;
(b) the Registrar of Companies to compound for the payment
of duty on unstamped Articles of Association and
Memorandum of Association lodged with the said
Registrar; and
(c) the principal officer of Tenaga Nasional Berhad to
compound for the payment of duty on the unstamped TNB
Electricity Supply Form issued and supplied by the
Tenaga Nasional Berhad.
(2) The said authorized persons shall levy upon charge to the
person to whom such instruments referred to in subsection (1) are
issued the stamp duty mentioned in the First Shcedule.
(3) The said authorized person shall pay on the 1st day of each
calendar month in each year to the Collector the amount due and
collected thereon as duties on such unstamped instruments and where
he fails to pay the amount on each date specified or within fourteen
days immediately thereafter, he shall in addition to the amount due
pay a further amount of two hundred ringgit or ten per centum of the
amount due whichever is the greater and any amount due shall be
recoverable as a debt due to the Government.
(4) The said authorized person shall deposit with the Collector, as
security for the due payment to the Collector of any moneys payable
under subsection (2), such sum, if any, as the Minister of Finance
may direct.
(5) Instruments in respect of which payment of duty by way of
composition has been made under this section, notwithstanding any
other provision of this Act, shall be deemed to be duly stamped.
(6) Where any person has been authorized to compound for the
payment of duty on unstamped instrument as mentioned under
paragraph 1(a), (b) or (c), the Collector or any person authorized by

24

Laws of Malaysia

ACT 378

him in writing, may, at all reasonable times, inspect any stocks of


unstamped instrument held by such person and any books, records
and documents kept by him in connection with the issue of such
instrument.
(7) For the purpose of subsection (6), the person mentioned in
subsection (1) shall keep and retain the books, records and documents
in connection with the issue of such Articles of Association and
Memorandum of Association for a period of seven years from the
year in which such Articles of Association and Memorandum of
Association are issued.

How instruments are to be written and stamped


10. (1) Every instrument written upon stamped paper is to be
written in such manner, and every instrument partly or wholly written
before being stamped shall be so stamped, that the stamp may appear
on the face of the instrument and cannot be used for or applied to any
other instrument written upon the same piece of paper.
(2) If more than one instrument be written upon the same piece of
paper, every one of the instruments shall be separately and distinctly
stamped with the duty with which it is chargeable.

Where duty chargeable depends on duty paid on another


instrument
11. Where the duty with which an instrument is chargeable, or its
exemption from duty, depends in any manner upon the duty actually
paid in respect of another instrument, the payment of such lastmentioned duty shall, upon application to the Collector for that
purpose and production of both the instruments, be denoted upon
such first-mentioned instrument by indorsement under the hand of the
Collector or in such other manner, if any, as may be prescribed by
rules made under this Act.

Stamp

25

Replica
11A. (1) Where a replicate of an instrument is presented to the
Collector, the replicate of such instrument shall not be deemed to be
duly stamped unless it can be shown to the satisfaction of the
Collector that all the facts and circumstances affecting the liability of
the original instrument to duty, and the amount of the duty chargeable
thereon has been paid.
(2) For the purpose of subsection (1), the Collector shall indorse
on the replicate of the instrument that full and proper duty with which
the original is chargeable had been paid upon payment of a fee of one
hundred ringgit for each replicate of an instrument.

Duplicate and counterparts


12. The duplicate or counterpart of an instrument chargeable with
duty (except the counterpart of an instrument chargeable as a lease,
such counterpart not being executed by or on behalf of any lessor or
grantor) shall not be deemed to be duly stamped unless
(a) it is stamped as an original instrument;
(b) it appears by a certificate indorsed by the Collector on the
duplicate or counterpart that full and proper duty has been
paid on the original instrument; or
(c) there is denoted on the stamp certificate issued for the
duplicate or counterpart that payment of the stamp duty
has been paid in respect of the original instrument.

Valuation for Duty


Assessment of the value of property under transfer or settlement
12A. Where an instrument is chargeable with duty under Item 32(a)
of the First Schedule, the date for determining the market value of
any property being transferred, settled or gifted shall be

26

Laws of Malaysia

ACT 378

(a) in the case of a settlement or gift, the date of execution of


the instrument of trust or settlement or gift;
(b) in the case of a transfer implementing a sale under a duly
stamped agreement of sale and purchase, the date of
execution of that agreement;
(c) in the case of a transfer of any property granted by a
statutory body, a local authority or any co-operative
society registered under any laws relating to co-operative
societies, the date when the final terms of transfer had
been communicated to the transferee, and in the case of
subsequent resale of that property, the date of consent by
the statutory body or local authority or the board of the
co-operative society for that resale;
(d) in the case of a transfer under a duly stamped sale and
purchase agreement where financial arrangements have
been made in accordance with the Syariah, the date of
execution of agreement; or
(e) in any other case, the date of execution of the instrument
of transfer.

Currency and securities


13. (1) Where an instrument is chargeable with ad valorem duty
in respect of
(a) any money expressed in any currency other than ringgit;
(b) any stock or marketable or other security, the duty shall be
calculated on the value, on the day of the date of the
instrument or on the day it is stamped if executed out of
Malaysia, of the money in ringgit according to the current
rate of exchange, or of the stock or security according to

Stamp

27

the average price thereof or, if there be no price, according


to the value thereof.
(2) Where an instrument contains a statement of current rate of
exchange or average price, as the case may require, and is stamped in
accordance with such statement, it shall, so far as regards the subjectmatter of such statement, be presumed, until the contrary is proved, to
be duly stamped.

Instruments reserving interest


14. When interest is expressly made payable by the terms of an
instrument, such instrument shall not be chargeable with duty higher
than that with which it would have been chargeable if no mention of
interest had been made therein.

Principal securities in syariah financing


14A. Where it is shown that a principal or primary security secures
the repayment of moneys provided under a scheme of financing made
according to the syariah, duty chargeable thereon shall be calculated
on the principal amount provided by the financier or financing body.

PART III
PROVISIONS APPLICABLE TO PARTICULAR
INSTRUMENTS
Relief from stamp duty in case of reconstructions or
amalgamations of companies
15. (1) If in connection with a scheme for the reconstruction of
any company or companies or the amalgamation of any companies it
is shown to the satisfaction of the Collector that there exist the
following conditions, that is to say:

28

Laws of Malaysia

ACT 378

(a) that a company with limited liability has been registered


within six months before the commencement of this Act,
or that a company with limited liability is to be registered,
or that since the commencement of this Act a company
has been incorporated by special written law, or that since
the commencement of this Act or within six months
before the commencement thereof the nominal share
capital of a company has been increased;
(b) that the company (in this section referred to as the
transferee company) is to be registered in Malaysia or
has been incorporated in Malaysia or has increased its
capital with a view to the acquisition either of the
undertaking of, or of not less than ninety per centum of
the issued share capital of, any particular existing
company;
(c) that the consideration for the acquisition (except such part
thereof as consists in the transfer to or discharge by the
transferee company of liabilities of the existing company)
consists as to not less than ninety per centum thereof
(i) where an undertaking is to be acquired, in the issue
of shares in the transferee company to the existing
company or to holders of shares in the existing
company; or
(ii) where shares are to be acquired, in the issue of
shares in the transferee company to the holders of
shares in the existing company in exchange for the
shares held by them in the existing company; then,
subject to this section, stamp duty under Item
32(a) or (b) in the First Schedule shall not be
chargeable on any instrument made for the
purposes of or in connection with the transfer of
the undertaking or shares:
Provided that

Stamp

29

(a) no such instrument shall be deemed to be duly stamped


unless either it is stamped with the duty to which it would
but for this section be liable or it has been brought to the
Collector under section 36 and he has certified under
section 37 either that the full duty with which it is
chargeable has been paid, or that it is not chargeable with
duty; and
(b) in the case of an instrument made for the purposes of or in
connection with a transfer to a company within the
meaning of the Companies Act 1965 the provisions of this
subsection shall not apply unless the instrument is
either
(i) executed within a period of twelve months from
the date of the registration of the transferee
company or the date of the resolution for the
increase of the nominal share capital of the
transferee company, as the case may be; or
(ii) made for the purpose of effecting a conveyance or
transfer in pursuance of an agreement which has
been filed, or particulars of which have been filed,
with the Registrar of Companies within the said
period of twelve months.
(2) For the purposes of a claim for exemption under
subsection (1), a company which has, in connection with a scheme of
reconstruction or amalgamation, issued any unissued share capital,
shall be treated as if it had increased its nominal share capital.
(3) A company shall not be deemed to be a particular existing
company within the meaning of this section unless it is provided by
the memorandum of association of, or written law incorporating, the
transferee company that one of the objects for which the company is
established is the acquisition of the undertaking of, or shares in, the
existing company, or unless it appears from the resolution, or other
authority for the increase of the capital of the transferee company that
the increase is authorized for the purpose of acquiring the
undertaking of, or shares in, the existing company.

30

Laws of Malaysia

ACT 378

(4) Where a claim is made for exemption under this section, the
Collector may require the delivery to him of a statutory declaration in
such form as he may direct made by an advocate and solicitor, or, in
the case of Sabah and Sarawak, an advocate, of the High Court, and
of such further evidence, if any, as he deems necessary.
(5)

If
(a) where any claim for exemption from duty under this
section has been allowed, it is subsequently found that
any declaration or other evidence furnished in support of
the claim was untrue in any material particular, or that
the conditions specified in subsection (1) are not fulfilled
in the reconstruction or amalgamation as actually carried
out;
(b) where shares in the transferee company have been issued
to the existing company in consideration of the
acquisition, the existing company within a period of two
years from the date, as the case may be, of the
registration or incorporation, or of the authority for the
increase of the capital, of the transferee company ceases,
otherwise than in consequence of reconstruction,
amalgamation, liquidation or in compliance with
Government policy on capital participation in industry to
be the beneficial owner of the shares so issued to it; or
(c) where any such exemption has been allowed in
connection with the acquisition by the transferee
company of shares in another company, the transferee
company within a period of two years from the date of its
registration or incorporation or of the authority for the
increase of its capital, as the case may be, ceases,
otherwise than in consequence of reconstruction,
amalgamation or liquidation, to be the beneficial owner
of the shares so acquired;

Stamp

31

the exemption shall be deemed not to have been allowed and an


amount equal to the duty remitted shall become payable forthwith,
and shall be recoverable from the transferee company as a debt due to
the Government, together with interest thereon at the rate of six per
centum per annum, from the date on which the duty would have
become chargeable if this section had not been passed.
(6) If in the case of any scheme of reconstruction or
amalgamation, the Collector is satisfied that at the proper time for
making a claim for exemption from duty under subsection (1) there
were in existence all the necessary conditions for such exemption
other than the condition that not less than ninety per centum of the
issued share capital of the existing company would be acquired by the
transferee company, the Collector may, if it is proved to his
satisfaction that not less than ninety per centum of the issued capital
of the existing company has under the scheme been acquired within a
period of six months from the earlier of the two following dates, that
is to say
(a) the last day of the period of one month after the first
allotment of shares made for the purposes of the
acquisition; or
(b) the date on which an invitation was issued to the
shareholders of the existing company to accept shares in
the transferee company,
and on production of the instruments on which the duty paid has been
impressed, direct repayment to be made of such an amount of duty as
would have been remitted if the said condition had been originally
fulfilled.
(7)

In this section, unless the context otherwise requires


(a) references to a company (other than that of the transferee
company) or to the registration or incorporation of a
company (other than that of the transferee company) shall
be construed as references to a company wherever
registered or incorporated;

32

Laws of Malaysia

ACT 378

(b) references to the undertaking of an existing company


include references to a part of the undertaking of an
existing company;
(c) the expression shares includes stock.

Relief from stamp duty in case of transfer of property between


associated companies
15A. (1) Stamp duty under Item 32(a) or (b) in the First Schedule
shall not be chargeable on any instrument to which this section
applies:
Provided that no such instrument shall be deemed to be duly
stamped unless either it is stamped with the duty to which it would
but for this section be liable or it has been brought to the Collector
under section 36 and he has certified under section 37 either that the
full duty with which it is chargeable has been paid, or that it is not
chargeable with duty.
(2) This section applies to any instrument with respect to which it
is shown to the satisfaction of the Collector that the effect thereof is
to transfer a beneficial interest in property from one company with
limited liability to another such company, and that the companies in
question are associated, that is to say, one is the beneficial owner of
not less than ninety per centum of the issued share capital of the
other, or that a third company with limited liability is the beneficial
owner of not less than ninety per centum of the issued share capital of
each of the aforesaid companies.
(3) The ownership referred to in subsection (2) is ownership
either directly or through another company or other companies, or
partly directly and partly through another company or other
companies, and the Sixth Schedule shall apply for the purposes of
this section.

Stamp

33

(4) This section shall not apply to any instrument unless it is also
shown to the satisfaction of the Collector that the instrument was not
executed in pursuance of or in connection with an arrangement
whereunder
(a) the consideration, or any part of the consideration, for the
transfer was to be provided or received, directly or
indirectly, by a person other than a company which at the
time of the execution of the instrument was associated
within the meaning of this section with either the
transferor or the transferee (meaning, respectively, the
company from whom and the company to whom the
beneficial interest was transferred); or
(b) the said interest was previously transferred, directly or
indirectly, by such a person; or
(c) the transferor and the transferee were to cease to be
associated within the meaning of this section by reason of
a change in the percentage of the issued share capital of
the transferee in the beneficial ownership (within the
meaning of this section) of the transferor or a third
company,
and, without prejudice to the generality of paragraph (a), an
arrangement shall be treated as falling within at paragraph if it is one
whereunder the transferor or the transferee, or a company associated
with either as there-mentioned, was to be enabled to provide any of
the consideration, or was to part with any of it, by or in consequence
of the carrying out of a transaction or transactions involving, or any
of them involving, a payment or other disposition by a person other
than a company so associated.

Voluntary conveyance inter vivos


16. (1) Any conveyance or transfer operating as a voluntary
disposition inter vivos shall be chargeable with the like stamp duty as
if it were a conveyance or transfer on sale.

34

Laws of Malaysia

ACT 378

(2) The Collector may be required to express his opinion under


section 36 on any conveyance or transfer operating as a voluntary
disposition inter vivos, and no such conveyance or transfer shall be
deemed to be duly stamped unless the Collector has expressed his
opinion thereon in accordance with that section.
(3) Any conveyance or transfer, not being a disposition made in
favour of a purchaser or incumbrancer or other person in good faith
and for valuable consideration, shall, for the purposes of this section,
be deemed to be a conveyance or transfer operating as a voluntary
disposition inter vivos, and (except where marriage is the
consideration) the consideration for any conveyance or transfer shall
not for this purpose be deemed to be valuable consideration where by
reason of the inadequacy of the sum paid as consideration or other
circumstances the conveyance or transfer confers a substantial benefit
on the person to whom the property is conveyed or transferred.
(4) A conveyance or transfer made for nominal consideration for
the purpose of securing the repayment of an advance or loan or made
for effectuating the appointment of a new trustee or the retirement of
a trustee, whether the trust is expressed or implied, or under which no
beneficial interest passes in the property conveyed or transferred, or
made to a beneficiary by a trustee or other person in a fiduciary
capacity under any trust, whether expressed or implied, shall not be
charged with duty under this section, and this subsection shall have
effect notwithstanding that the circumstances exempting the
conveyance or transfer from charge under this section are not set
forth in the conveyance or transfer.

How transfer for debts, stocks, securities, future payments and


further consideration to be charged
17. (1)

Where any property is transferred

(a) in consideration, wholly or in part, of any debt or of any


stock or marketable security; or

Stamp

35

(b) subject, either certainly or contingently, to the payment or


transfer of any money or stock, whether being or
constituting a charge or incumbrance upon the property or
not,
the instrument of transfer shall be chargeable with ad valorem duty
calculated at the rates specified under Item 32(a) in the First Schedule
upon either the value of the debt, stock or marketable security, as the
case may be, or the market value of the property as on the date of
execution, whichever be the greater.
(2) Where the consideration, or any part of the consideration, for
a transfer of property consists of any security other than a marketable
security, the instrument of transfer shall be chargeable with ad
valorem duty calculated at the rates specified under Item 32(a) in the
First Schedule upon either the amount due upon the security for
principal and interest or, in the case of a security given under a
scheme of financing made according to the syariah, any sum due and
payable in addition to the principal, or upon the market value of the
property as on the date of execution, whichever be the greater.
(3) A conveyance on sale made for any consideration in respect
whereof it is chargeable with ad valorem duty, and in further
consideration of a covenant by the purchaser to make, or of his
having previously made, any substantial improvement of or addition
to the property transferred to him or of any covenant relating to the
subject-matter of the transfer, is not chargeable, and shall be deemed
not to have been chargeable, with any duty in respect of such further
consideration.

Duties on foreclosure orders


18. Subject to section 17, a decree or order for, or having the effect
of an order for foreclosure in respect of mortgaged property shall be
chargeable with duty as if it were a conveyance of such property on
sale:
Provided that

36

Laws of Malaysia

ACT 378

(a) the ad valorem stamp duty upon any such decree or order
shall not exceed the duty on a sum equal to the value of
the property to which the decree or order relates, and
where the decree or order states that value such statement
shall be conclusive for the purpose of determining the
amount of the duty; and
(b) where ad valorem stamp duty is paid upon such decree or
order, any conveyance following upon such decree or
order shall be exempt from the ad valorem stamp duty.

Valuation in case of annuity


19. (1) Where the consideration, or any part of the consideration,
for a conveyance on sale consists of money payable periodically for a
definite period not exceeding twenty years, so that the total amount to
be paid can be previously ascertained, the conveyance shall be
charged in respect of that consideration with ad valorem duty on such
total amount.
(2) Where the consideration, or any part of the consideration, for
a conveyance on sale consists of money payable periodically for a
definite period exceeding twenty years or in perpetuity, or for any
indefinite period not terminable with life, the conveyance is to be
charged in respect of that consideration with ad valorem duty on the
total amount which will or may, according to the terms of sale, be
payable during the period of twenty years next after the day of the
date of the instrument.
(3) Where the consideration, or any part of the consideration, for
a conveyance on sale consists of money payable periodically during
any life or lives, the conveyance shall be charged in respect of that
consideration with ad valorem duty on the amount which will or may,
according to the terms of sale, be payable during the period of twelve
years next after the day of the date of the instrument.

Stamp

37

(4) No conveyance on sale chargeable with ad valorem duty in


respect of any periodical payments, and containing also provision for
securing the payments, shall be charged with any duty in respect of
such provision, and no separate instrument made in that case for
securing the payments is to be charged with any higher duty than ten
ringgit.

Direction as to duty in case of certain conveyances


20. (1) Where property contracted to be sold for one
consideration for the whole is conveyed to the purchaser in separate
parts or parcels by different instruments, the consideration shall be
apportioned in such manner as the parties think fit, so that a distinct
consideration for each separate part or parcel is set forth in the
conveyance relating thereto, and such conveyance shall be chargeable
with ad valorem duty in respect of such distinct consideration.
(2) Where property contracted to be purchased for one
consideration for the whole by two or more persons jointly, or by any
person for himself and others, or wholly for others, is conveyed in
parts or parcels by separate instruments to the person by or for whom
the same was purchased for distinct parts of the consideration, the
conveyance for each separate part or parcel shall be chargeable with
ad valorem duty in respect of the distinct part of the consideration
therein specified.
(3) Where a person having contracted for the purchase of any
property but not having obtained a conveyance thereof, contracts to
sell the same to any other person and the property is in consequence
conveyed immediately to the sub-purchaser, the conveyance shall be
chargeable with ad valorem duty in respect of the consideration
moving from the sub-purchaser.
(4) Where a person, having contracted for the purchase of any
property but not having obtained a conveyance thereof, contracts to
sell the whole, or any part thereof, to any other person or persons and
the property is in consequence conveyed by the original seller to
different persons in parts or parcels, the conveyance of each part or
parcel sold to a sub-purchaser shall be chargeable with ad valorem

38

Laws of Malaysia

ACT 378

duty in respect only of the consideration moving from the subpurchaser thereof, without regard to the amount or value of the
original consideration; and the conveyance of the residue, if any, of
such property to the original purchaser shall be chargeable with ad
valorem duty in the manner specified by section 12A and Item 32(a)
of the First Schedule.
(5) Where a sub-purchaser takes an actual conveyance of the
interest of the person immediately selling to him, which is chargeable
with ad valorem duty in respect of the consideration moving from
him and is duly stamped accordingly, any conveyance to be
afterwards made to him of the same property by the original seller
shall be chargeable with a duty equal to that which would be
chargeable on a conveyance for the consideration obtained by such
original seller, or where such duty would exceed ten ringgit with a
duty of ten ringgit.

Exchange of real property


20A. Where upon the exchange of any real property for any other
real property, or upon the partition or division of any real property,
any consideration is paid or given, or agreed to be paid or given, for
equality:
(a) the principal or only instrument whereby the exchange or
partition or division is affected is to be charged with the
same ad valorem duty as a conveyance on sale for the
consideration, and with that duty only; and
(b) where in any such case there are several instruments for
completing the title of either party, the principal
instrument is to be ascertained and the other instruments
are to be charged, with duty in the manner hereinbefore
provided in the case of several instruments of conveyance.

Stamp

39

Vesting or transfer of an undivided interest in property


20B. (1) Every conveyance either on sale or by way of gift or
settlement which operates to vest or transfer an undivided interest in
real property, shall contain an affidavit of the transferee certifying
that the transaction effected by the instrument does not form part of a
larger transaction or series of transactions completed or to be
completed within a period of twelve months after the date of the first
of the instruments employed to complete the conveyance of the
property.
(2) Where the transaction effected by the instrument forms part of
a larger transaction or series of transactions, ad valorem duty upon
that instrument and upon any other instrument following shall be
calculated on the aggregate of the consideration or market values of
the separate parts or parcels being conveyed, whichever is the higher,
at the rates specified under Item 32(a) of the First Schedule.

Certain contracts to be chargeable as conveyances on sale


21. (1) Any contract or agreement made in Malaysia under seal or
under hand only, for the sale of any equitable estate or interest in any
property whatsoever, or for the sale of any estate or interest in any
property except lands, tenements, hereditaments, or heritages, or
property locally situate out of Malaysia, or goods, wares or
merchandise, or stock, or marketable securities, or any ship or vessel,
or part interest, share or property of or in any ship or vessel, shall be
charged with the same ad valorem duty, to be paid by the purchaser,
as if it were an actual conveyance on sale of the estate, interest or
property contracted or agreed to be sold.
(2) Where the purchaser has paid the said ad valorem duty and,
before having obtained conveyance or transfer of the property, enters
into a contract or agreement for the sale of the same, the contract or
agreement shall be charged, if the consideration for that sale is in
excess of the consideration for the original sale, with the ad valorem
duty payable in respect of such excess consideration, and in any other
case with the fixed duty of ten ringgit.

40

Laws of Malaysia

ACT 378

(3) Where duty has been duly paid in conformity with the
foregoing provisions, the conveyance or transfer made to the
purchaser or sub-purchaser, or any other person on his behalf or by
his direction, shall not be chargeable with any duty, and the
Collector, upon application, either shall denote the payment of the ad
valorem duty upon the conveyance or transfer or shall transfer the ad
valorem duty thereto upon production of the contract or agreement, or
contracts or agreements, duly stamped.
(4)

(Deleted by Act A723).

(5)

(Deleted by Act A723).

(6)

(Deleted by Act A723).

(7) The ad valorem duty paid upon any such contract or


agreement shall be returned by the Collector in case the contract or
agreement be afterwards rescinded or annulled, or for any other
reason be not substantially performed or carried into effect, so as to
operate as or be followed by a conveyance or transfer.

Sale of annuity or right not before in existence


22. Where upon the sale of any annuity or other right not before in
existence such annuity or other right is not created by actual grant or
conveyance, but is only secured by bond, warrant of attorney,
covenant, contract or otherwise, the bond or other instrument, or
some one of such instruments, if there be more than one, shall be
charged with the same duty as an actual grant or conveyance, and
shall for the purposes of this Act be deemed an instrument of
conveyance on sale.

What is to be deemed a conveyance, not being a sale or mortgage


23. Every instrument and every decree or order of any court,
whereby any property on any occasion, except a sale or mortgage, is

Stamp

41

transferred to or vested in any person, shall be charged as a


conveyance or transfer of property.

Leases, how to be charged in respect of produce, etc.


24. (1) Where the consideration or any part of the consideration
for which a lease is granted or agreed to be granted consists of any
produce or other goods, the value of the produce or goods shall be
deemed a consideration in respect of which the lease or agreement is
chargeable with ad valorem duty.
(2) Where it is stipulated that the value of the produce or goods is
to amount at least to, or is not to exceed, a given sum, or where the
lessee is specially charged with, or has the option of paying after any
permanent rate of conversion, the value of the produce or goods shall,
for the purpose of assessing the ad valorem duty, be estimated at the
given sum, or according to such permanent rate.
(3) A lease or agreement for a lease made either wholly or
partially for any such consideration, if it contains a statement of the
value thereof and is stamped in accordance with the statement, shall,
so far as regards the subject matter of the statement, be deemed duly
stamped, unless or until it is otherwise shown that the statement is
incorrect, and that the lease or agreement is in fact not duly stamped.

Directions as to duty upon leases, etc.


25. (1) A lease or agreement for a lease or with respect to any
letting shall not be charged with any duty in respect of any penal rent,
or increased rent in the nature of a penal rent, thereby reserved or
agreed to be reserved or made payable or by reason of being made in
consideration of the surrender or abandonment of any existing lease,
or agreement of or relating to the same subject matter.
(2) A lease made for any consideration in respect whereof it is
chargeable with ad valorem duty, and in further consideration either
of a covenant by the lessee to make, or of his having previously
made, any substantial improvement of or addition to the property

42

Laws of Malaysia

ACT 378

demised to him, or of any convenant relating to the matter of the


lease, shall not be charged with any duty in respect of such further
consideration, except where such further consideration consists of a
covenant which if it were contained in a separate deed would be
chargeable with ad valorem duty.
(3) An instrument whereby the rent reserved by any other
instrument chargeable with duty and duly stamped as a lease is
increased shall not be charged with duty otherwise than as a lease in
consideration of the additional rent thereby made payable.
Direction as to duty upon transfer of stock
26. (1) A security for the transfer or re-transfer of any stock shall
be charged with the same duty as a similar security for a sum of
money equal in amount to the value of the stock; and a transfer,
assignment or disposition or assignation of any such security and a
reconveyance, release, discharge, surrender, re-surrender, warrant to
vacate or renunciation of any such security shall be charged with the
same duty as an instrument of the same description relating to a sum
of money equal in amount to the value of the stock.
(2) A security for the payment of any rentcharge, annuity or
periodical payments by way of repayment, or in satisfaction or
discharge of any loan, advance or payment intended to be so repaid,
satisfied or discharged, shall be charged with the same duty as a
similar security for the payment of the sum of money so lent,
advanced or paid.
(3) A transfer of a duly stamped security, and a security by way
of further charge for money or stock, added to money or stock
previously secured by a duly stamped instrument, shall not be
charged with any duty by reason of its containing any further or
additional security for the money or stock transferred or previously
secured, or the interest or dividends thereof, or any new convenant,
proviso, power, stipulation or agreement in relation thereto, or any

Stamp

43

further assurance of the property comprised in the transferred or


previous security.
(4) An instrument chargeable with ad valorem duty as a mortgage
shall not be charged with any further duty by reason of the equity of
redemption in the mortgaged property being thereby conveyed or
limited in any other manner than to a purchaser, or in trust for, or
according to the direction of, a purchaser.

27. (Deleted by Act A723).


Security for future advances, how to be charged
28. (1) A security for the payment or repayment of money to be
lent, advanced or paid, or which may become due upon an account
current, either with or without money previously due, shall be
charged, where the total amount secured or to be ultimately
recoverable is in any way limited, with the same duty as a security for
the amount so limited.
(2) Where such total amount is unlimited, the security is to be
available for such an amount only as the ad valorem duty stamped
thereon extends to cover; but where any advance or loan is made in
excess of the amount covered by that duty the security shall for the
purpose of stamp duty be deemed to be a new and separate
instrument bearing date on the day on which the advance or loan is
made.
(3) No money to be advanced for the insurance of any property
comprised in the security against damage by fire, or for keeping up
any policy of life insurance comprised in the security, or for effecting
in lieu thereof any new policy, shall be reckoned as forming part of
the amount in respect whereof the security is chargeable with ad
valorem duty.
29. (Deleted by Act A723).

44

Laws of Malaysia

ACT 378

Directions as to duty upon a primary or principal security


29A. In determining whether an instrument is the only, principal or
primary security for any annuity, or for any sum or sums of money or
for the payment or repayment of money within the meaning of Item
22(1) or Item 27(a) in the First Schedule, no account shall be taken of
any other instrument which is a security for the same annuity, sum or
sums of money or for the same payment or repayment, as the case
may be, or for any part thereof, unless that other instrument is
chargeable with stamp duty under either of the said paragraphs and is
duly stamped.
Directions as to sea policy
30. (1) No contract for sea insurance, other than such insurance as
is referred to in section 363 of the Merchant Shipping Ordinance
1952 [Ord. No 70 of 1952] or any corresponding provision in any
other written law for the time being in force in Sabah or Sarawak
shall be valid unless the same is expressed in a policy of sea
insurance.
(2) No policy of sea insurance made for time shall be made for
any time exceeding twelve months.
(3) No policy of sea insurance shall be valid unless it specifies
the particular risk or adventure or the time for which it is made, the
names of the subscribers or underwriters, and the amount or amounts
insured.
(4) Where any sea insurance is made for or upon a voyage and
also for time, or to extend to or cover any time beyond thirty days
after the ship shall have arrived at her destination and been there
moored at anchor, the policy shall be charged with duty as a policy
for or upon a voyage and also with duty as a policy for time.
(5) Notwithstanding anything contained in this section a policy of
sea insurance made for time may contain a continuation clause, and

Stamp

45

such a policy shall not be invalid on the ground only that by reason of
the continuation clause it may become available for a period
exceeding twelve months.
(6) There shall be charged on a policy of sea insurance containing
a continuation clause the stamp duty mentioned in the First Schedule
in addition to the stamp duty which is otherwise chargeable on the
policy.
(7) If the risk covered by the continuation clause attaches and a
new policy is not issued covering the risk, the continuation clause
shall be deemed to be a new and separate contract of sea insurance
expressed in the policy in which it is contained, but not covered by
the stamp thereon, and the policy shall be stamped in respect of that
contract accordingly, but may be so stamped without penalty at any
time not exceeding thirty days after the risk has so attached.
(8) Where any person, in consideration of any sum of money paid
or to be paid for additional freight or otherwise, agrees to take upon
himself any risk attending goods, merchandise or property of any
description whatever while on board of any ship or vessel, or engages
to indemnify the owner of any such goods, merchandise or property
from any risk, loss or damage such agreement or engagement shall be
deemed to be a contract for sea insurance.
Legal alteration in sea policies may be made
31. Nothing in this Act shall prohibit the making of any alteration
which may lawfully be made in the terms and conditions of any
policy of sea insurance after the policy has been underwritten:
Provided that
(a) the alteration is made before notice of the determination of
the risk originally insured;
(b) it does not prolong the time covered by the insurance
thereby made beyond the period of six months in the case
of a policy made for a less period than six months, or

46

Laws of Malaysia

ACT 378

beyond the period of twelve months in the case of a policy


made for a greater period than six months;
(c) the articles insured remain the property of the same person
or persons; and
(d) no additional or further sum is insured by reason or means
of the alteration.
Directions as to certain contract notes
32. (1) Where a contract note is a continuation or carrying over
note made for the purpose of continuing or carrying over any
transaction for the sale or purchase of stock or marketable securities,
the contract note, although it is made in respect of both a sale and
purchase, shall be charged with duty under this section as if it related
to one of those transactions only, and, if different rates of duty are
chargeable in respect of those transactions, to that one of those
transactions which would render the contract note chargeable at the
highest rate.
(2) Where a contract note advises the sale or purchase of more
than one description of stock or marketable security, the note shall be
deemed to be as many contract notes as they are descriptions of
stocks or securities sold or purchased.
Obligation to execute contract note
32A. (1) Any person who effects any sale or purchase of any
stock or marketable security as a dealer or agent, and any person
who, by way of business
(a) deals or holds himself out as dealing as a principal in any
stock or marketable security; and
(b) buys or sells any stock or marketable security, shall
forthwith make and execute a contract note, and transmit

Stamp

47

the note to his principal, or to the vendor or purchaser of


the stock or marketable security, as the case may be.
(2) No dealer, agent or other person shall have any legal claim to
any charge for brokerage, commission or agency with reference to the
sale or purchase of any stock or marketable security if he fails to
comply with this section.
PART IV
LIABILITY FOR PAYMENT OF DUTY
Duty by whom payable
33. The expense of providing the proper stamp duty be borne
(a) in the case of the instruments described in the first column
of the Third Schedule, by the person mentioned in the
second column of such Schedule;
(b) in the case of every other instrument, by the person
drawing, making or executing such instrument.
34. (Deleted by Act 476).
Exemptions
35. The instruments appearing under the heading of General
Exemptions in the First Schedule shall not be chargeable with duty.
PART V
ADJUDICATION AS TO STAMPS
Mode of adjudication as to proper stamp
36. (1) All instruments chargeable with duty and executed by any
person in Malaysia (except an instrument which by virtue of

48

Laws of Malaysia

ACT 378

section 47 cannot be stamped after execution) shall be brought to the


Collector and the Collector shall assess the duty, if any, with which in
his judgment the instrument is chargeable.
(2) For this purpose the Collector may require an abstract of the
instrument to be furnished, and also such affidavit or other evidence
as he deems necessary to prove that all the facts and circumstances
affecting the liability of the instrument to duty, or the amount of the
duty chargeable thereon, are fully and truly set forth therein, and may
refuse to proceed upon any such application until such abstract and
evidence have been furnished to him accordingly.
(3) No evidence furnished in pursuance of this section shall be
used against any person in any civil proceeding, except in an inquiry
as to the duty with which the instrument to which it relates is
chargeable.
(4) Every person by whom any such evidence is furnished shall,
on payment of the full duty with which the instrument to which it
relates is chargeable, be relieved from any penalty which he has
incurred under this Act by reason of the omission to state truly in
such instrument any of the facts or circumstances aforesaid.

Initial duty
36A. (1) Notwithstanding section 36 but subject to section 36B,
the Collector may, on an application made by any person in respect of
an instrument for the transfer of an immovable property, assess the
initial duty for which the instrument is chargeable.
(2) The application made under subsection (1) shall contain
particulars or evidence deemed necessary to prove the facts affecting
the liability of the instrument to duty and any valuation report,
prepared by a person privately practising as a valuer, on the market
value of the immovable property shall for the purposes of this section
be sufficient evidence for the Collector to make an assessment on the
initial duty for which the instrument is chargeable.

Stamp
(3)

49

For the purposes of this section, a person shall


(a) pay a fee of ten ringgit; and
(b) furnish in a form of a bank guarantee payable to the
Collector, as security for payment of further duty
chargeable on the instrument, if any, valid for a period of
not less than six months, of which the value of the bank
guarantee shall be determined in accordance with the
following formula:
AB
where

is the duty chargeable on such


instrument based on the value of
immoveable property where the value
is ascertained in accordance with the
following formula:
Y x 100
65
where

is the market value of


such
property
as
submitted by that
person;

is the amount of duty chargeable on


such instrument based on the market
value submitted by that person.

Advance duty
36AA. (1) Notwithstanding sections 36 and 36A, the Collector
may, on an application made by any person assess the advance duty
for an instrument for the transfer of an immovable property where the
consideration consists wholly of money.

50

Laws of Malaysia

ACT 378

(2) For the purposes of subsection (1), the Collector shall, prior to
the market value of the immovable property being ascertained by a
valuer employed by the Government for the purpose of subsection
36B(1A), ascertain the market value in advance for which the
instrument referred to in that subsection is chargeable in accordance
with the following formula:

100
83.333

where

is the money value of the consideration


in respect of an instrument for the
transfer of an immovable property as
submitted by the person.

(3) The Collector shall assess the duty chargeable on the


instrument referred to in subsection (1) based on the market value as
ascertained in advance under subsection (2).

Additional duty
36B. (1) Where section 36A applies and it appears to the
Collector that based on the market value of the property as
ascertained by a valuer employed by the Government, the proper
amount of duty chargeable on the instrument is higher than the initial
duty paid, he may within three months after the payment of the initial
duty make an additional assessment on a person liable to pay such
duty in the additional amount of duty chargeable.
(1A) Where section 36AA applies and it appears to the Collector
that based on the market value of the immovable property as
ascertained by the valuer employed by the Government, the proper
amount of duty chargeable on the instrument is higher than the
advance duty paid, he may make an additional assessment on the
person liable to pay such duty in the additional amount of duty
chargeable.

Stamp

51

(2) As soon as may be after the additional assessment has been


made under subsection (1) or (1A) the Collector shall cause a notice
of additional assessment to be served on the person liable to pay duty
in respect of such assessment.
(3) A notice of additional assessment shall be in appropriate
form and shall indicate in addition to any other material included
therein
(a) the proper amount of duty chargeable, the initial duty or
advance duty paid and amount of additional duty
chargeable on the instrument;
(b) the place at which payment is to be made;
(c) the increased sum imposed under subsection (6); and
(d) any right of appeal which may exist under this Act.
(4) The duty chargeable under an assessment shall be due and
payable on the service of the notice of additional assessment to the
person liable to pay the duty.
(5) Where initial duty due and payable under subsection (4) has
not been paid within thirty days after the service of the notice of
additional assessment
(a) the Collector shall call upon the bank guarantee furnished
to satisfy that amount of duty payable; and
(b) if the bank guarantee amount is insufficient to satisfy such
amount, the remaining duty unpaid, shall without any
further notice being served, be increased by an amount of
ten per cent of such duty so unpaid.
(6) Where the proper amount of duty chargeable under
subsection (1) exceeds the total sum of initial duty paid and bank
guarantee furnished, by an amount of more than thirty per cent of that
proper amount of duty chargeable, the difference between that
amount and thirty per cent of the proper duty chargeable shall be

52

Laws of Malaysia

ACT 378

increased by a sum equal to ten per cent of the amount of that


difference.
(6A) Where advance duty due and payable under subsection (4)
has not been paid within thirty days after the service of the notice of
additional assessment, so much of the duty remaining unpaid upon
the expiration of that date shall without any further notice being
served, be increased by a sum equal to ten per cent of the duty so
unpaid.
(7) The amount of duty unpaid and the increased amount under
paragraph (5)(b), and increased sum under subsection (6) or (6A)
shall be recoverable as a debt due to the Government.

Where duty chargeable is equal or lower than advance duty paid


and refund of advance duty paid in excess
36C. (1) Notwithstanding section 36B(1A), where section 36AA
applies and it appears to the Collector that based on the market value
of the immovable property as ascertained by the valuer employed by
the Government, the proper amount of duty chargeable on the
instrument is equal to or lower than the advance duty paid, he may
notify the person in writing of the valuation on the proper amount of
duty and such notification shall be deemed to be an assessment for
the purposes of this Act.
(2) Where it is proved to the satisfaction of the Collector that the
person has paid the advance duty chargeable under section 36AA in
excess of the proper amount of duty referred to in subsection (1), the
excess shall be refunded by the Collector.

Certificate by Collector
37. (1) When an instrument brought to the Collector under
section 36, 36A, 36AA or 36B and

Stamp

53

(a) the Collector determined that it is already fully stamped;


or
(b) the duty assessed by the Collector under such sections, as
the case may be, or such a sum as, with the duty already
paid in respect of the instrument, is equal to the duty so
assessed, has been paid,
(c) (Deleted by Act A1380)
the Collector shall certify by indorsement on such instrument that the
full duty, initial duty, advance duty or additional duty, as the case
may be stating the amount, with which it is chargeable, has been paid.
(2) When such instrument is not chargeable with duty the
Collector shall certify in manner aforesaid that such instrument is not
so chargeable.
(3) Any instrument upon which an indorsement has been made
under this section shall be deemed to be duly stamped or not
chargeable with duty, as the case may be; and, if chargeable with
duty, shall be receivable in evidence or otherwise and may be acted
upon and registered as if it had been originally duly stamped.
(4) Nothing in this section shall be deemed to require the
Collector to certify that the full duty with which an instrument is
chargeable has been paid
(a) unless any penalty chargeable in respect of the instrument
under this Act has been paid; or
(b) if the instrument cannot by law be stamped.
(5) This section shall only apply to instrument where indorsement
is required to be made on that instrument pursuant to any written law.

54

Laws of Malaysia

ACT 378

Exception to sections 36, 36A, 36AA, 36B, 36C and 37


38. Nothing in sections 36, 36A, 36AA, 36B, 36C and 37 shall
extend to any instrument chargeable with ad valorem duty and made
as a security for money or stock without limit.

Notice of objection
38A. (1) Any person who is dissatisfied with an assessment or
additional assessment of the Collector under this Part may, by written
notice (referred to in this Act as notice of objection), object to the
assessment or additional assessment and apply to the Collector to
review the assessment or additional assessment.
(2) Every notice of objection shall state the grounds of objection
to the Collectors assessment or additional assessment and shall be
made within thirty days after the date of the assessment or additional
assessment or such further period as the Collector may allow in any
particular case.
(3) The person giving a notice of objection shall furnish further
particulars and information in relation to the grounds of the objection
if required to do so by the Collector in writing.
(4) The Collector shall, on receipt of a notice of objection and
such further particulars and information as he may require under
subsection (3), review the assessment or additional assessment.
(5) After the objection has been determined, the Collector shall
notify the person in writing of his decision.
(6) Where, on review, it appears to the Collector that the amount
of duty originally or additionally assessed is excessive, he may cancel
the original or additional assessment and make such other assessment
in substitution of the original or additional assessment and shall serve
on the person a notice of substituted assessment.

Stamp

55

(7) The making of an objection shall not relieve the person of


liability to pay the duty as required by this Act.
(8) Any reference in this Act to an assessment or additional
assessment shall be construed as including a reference to a substituted
assessment under subsection (6).

Appeal to High Court


39. (1) Any person who is dissatisfied with the decision of the
Collector under subsection 38A(5) may, within twenty-one days after
the person is notified in writing of that decision and upon payment of
duty in conformity therewith, appeal against the decision to the High
Court by filing a notice of appeal with the High Court and may for
that purpose require the Collector to state and sign a case, setting
forth the question upon which is opinion was required, and the
decision made by him.
(1A) Where a notice of appeal has been filed under
subsection (1), the notice shall be served on the Collector within the
time stipulated for the filing of the notice of appeal.
(2) The Collector shall thereupon state and sign a case and
deliver the same to the person by whom it is required, and the case
may, within seven days thereafter or within such further time as the
Court may allow, be set down by him for hearing.
(3) Upon the hearing of the case the Court shall determine the
question submitted, and, if the instrument in question is in the
opinion of the Court chargeable with any duty, shall assess the duty
with which it is chargeable.
(4) If it is decided by the Court that the assessment or additional
assessment of the Collector is erroneous, any excess of duty which
may have been paid in conformity with the erroneous assessment,
together with any fine or penalty which may have been paid in
consequence thereof, shall be ordered by the Court to be repaid to the
appellant, with or without costs as the Court may determine.

56

Laws of Malaysia

ACT 378

(5) If the assessment or additional assessment of the Collector


is confirmed the Court may make an order for payment to the
Collector of the costs incurred by him in relation to the appeal.
Time of stamping after adjudication
40. Where an instrument is brought to the Collector pursuant to
subsection 36(1), the instrument shall be stamped in accordance with
the assessment of the Collector within fourteen days after notice of
the assessment, and in the case of an application to the High Court
under section 39 within fourteen days after the issue of the order of
the Court, or within such further period, in either case, as the
Collector when giving notice of assessment or the Court when
making the order, may specify:
Provided that the said period of fourteen days or any further period
specified by the Collector or the Court may, on application made
before the period or further period expires, be extended or further
extended by the Collector or the Court, as the case may be.
PART VI
OF THE TIME OF STAMPING INSTRUMENTS
Instruments executed in Malaysia
41. Save where express provision to the contrary is contained in
this Act, all instruments chargeable with duty and executed by any
person in Malaysia shall be stamped before or at the time of
execution.

Instruments executed out of Malaysia


42. (1) Every instrument chargeable with duty executed only out
of Malaysia, and not being a cheque or promissory note, may be
stamped within thirty days after it has first been received in Malaysia.

Stamp

57

(2) When any such instrument is brought to him for stamping the
Collector may require that the date of receipt thereof be verified by
production of the envelope in which the same was received or of any
accompanying letter, or, unless the date of the instrument shows that
it must have been received within thirty days, by statutory
declaration.

Bills, cheques or notes drawn out of Malaysia


43. (1) Every person into whose hands any cheque or promissory
note drawn or made out of Malaysia comes in Malaysia before it is
stamped shall, before he presents the same for acceptance or
payment, or endorses, transfers or otherwise negotiates the same in
Malaysia, affix thereto the proper adhesive stamp and cancel the
same.
(2) If, at the time when any such cheque or note comes into the
hands of any bona fide holder in Malaysia, the proper adhesive stamp
is affixed thereto and duly cancelled, such stamp shall, so far as
relates to such holder, be deemed to have been duly affixed and
cancelled.
(3) If, at the time when any such cheque or note comes into the
hands of any bona fide holder thereof in Malaysia, there is affixed
thereto the proper adhesive stamp not duly cancelled, it shall be
competent for such holder to cancel such stamp as if he were the
person by whom it was affixed, and upon his so doing the cheque or
note shall be deemed duly stamped, and as valid and available as if
the stamp had been cancelled by the person by whom it was affixed.
(4) Nothing contained in subsection (2) or (3) shall relieve any
person from any penalty incurred by him for omitting to affix or
cancel a stamp.
(5) A cheque or promissory note drawn or made out of Malaysia
which has not been duly stamped under subsection (1) may be
stamped after it has been presented for acceptance or payment, or
endorsed, transferred or otherwise negotiated in Malaysia

58

Laws of Malaysia

ACT 378

(a) if it is stamped within thirty days after it has been first


received in Malaysia, on payment in addition to the stamp
duty of a penalty of ten ringgit or of the amount of the
deficient duty, whichever penalty is the greater; or
(b) if it is stamped after the expiration of thirty days after it
has been received in Malaysia, on payment in addition to
the stamp duty of a penalty of
(i) twenty-five ringgit or five per centum of the
amount of the deficient duty, whichever sum be
the greater, if the instrument is stamped within
three months after the time for stamping;
(ii) fifty ringgit or ten per centum of the amount of the
deficient duty, whichever sum be the greater, if the
instrument is stamped later than three months but
not later than six months after the time for
stamping; or
(iii) one hundred ringgit or twenty per centum of the
amount of the deficient duty, whichever sum be
the greater, in any other case.
(6) The Collector may reduce or remit any penalty prescribed by
this section.

Bills of exchange and cheques accepted or payable outside


Malaysia
44. Notwithstanding anything in this Act contained, a cheque which
is presented for acceptance, or accepted, or payable outside Malaysia
shall not be invalid by reason only that it is not stamped in
accordance with this Act, and any such cheque which is unstamped or
insufficiently stamped may be received in evidence on payment of
the proper duty and the penalty, if any, payable under section 47A,
and such cheque shall, for the purposes of this section, be deemed to

Stamp

59

be an instrument which may be stamped after the first execution


thereof under such section.

Power of drawee to stamp bills or cheques


45. (1) Where any cheque, is presented for payment unstamped,
the person to whom it is so presented may affix thereto the proper
adhesive stamp, and upon cancelling the same in manner
hereinbefore provided, may pay the sum payable upon such cheque
and may charge the duty against the person who ought to have paid
the same or deduct it from the sum payable as aforesaid, and such
cheque shall, so far as respects the duty, be deemed good and valid.
(2) Nothing herein shall relieve any person from any penalty or
proceeding to which he may be liable in relation to such cheque.
Transfers of shares
46. Transfers of shares which are numbered shall not be stamped
until the numbers of the shares are entered.
Stamping of instrument after execution
47. Save where other express provision is made by this or any other
Act, any unstamped or insufficiently stamped instrument not being a
cheque or promissory note drawn or made within Malaysia may be
stamped after execution on payment of the unpaid duty if the
instrument is presented for stamping within thirty days of its
execution if executed within Malaysia, or within thirty days after it
has been first received in Malaysia if it has been executed out of
Malaysia.
Penalty for late stamping
47A. (1) An instrument which is not stamped within the period
specified in or under section 40 or 47 may be stamped on payment of
the unpaid duty and a penalty of

60

Laws of Malaysia

ACT 378

(a) twenty-five ringgit or five per centum of the amount of the


deficient duty, whichever sum be the greater, if the
instrument is stamped within 3 months after the time for
stamping;
(b) fifty ringgit or ten per centum of the amount of the
deficient duty, whichever sum be the greater, if the
instrument is stamped later than 3 months but not later
than 6 months after the time for stamping; or
(c) one hundred ringgit or twenty per centum of the amount
of the deficient duty, whichever sum be the greater, in any
other case.
(2) The Collector may, if he thinks fit, reduce or remit such
penalty or the further amount payable under paragraph 9(1)(c).
Denoting penalty
48. The payment of any penalty prescribed under section 43 or 47A
shall be denoted on the instrument concerned
(a) by a stamp duly cancelled;
(b) by means of an impressed stamp;
(c) by affixing an official receipt to the instrument; or
(d) by attaching a stamp certificate to the instrument,
and shall be certified by the Collector.
Persons liable to penalty
49. The person liable to any penalty under section 43 or section 47A
shall be the person by whom the duty is payable in accordance with
Part IV.

Stamp

61

Penalty, how recoverable


50. All duties, penalties and other sums required to be paid under
this Part shall be debts due to the Government and shall be
recoverable by any of the ways and means in force for the time being
for the recovery of debts due to the Government.

Error in assessment, etc.


50A. No assessment shall be affected by
(a) any erroneous or under assessment of the duty or penalty
by the Collector; or
(b) the failure to assess that duty or penalty by the Collector,
and the correct amount of duty or penalty due on the instrument shall
be debts due to the Government and shall be recoverable by any of
the ways and means in force for the time being for the recovery of
debts due to the Government.

PART VII
INSTRUMENTS NOT DULY STAMPED
Examination and impounding of instruments
51. (1) Every person having by law or consent of parties authority
to receive evidence, and every person in charge of a public office,
except an officer of police, before whom any instrument, chargeable,
in his opinion, with duty, is produced or comes in the performance of
his functions, shall, if it appears to him that such instrument is not
duly stamped, impound the same.
(2) For that purpose every such person shall examine every
instrument so chargeable and so produced or coming before him in
order to ascertain whether it is stamped with a stamp of the value and

62

Laws of Malaysia

ACT 378

description required by the law in force in Malaysia when such


instrument was executed or first executed:
Provided that
(a) nothing herein contained shall be deemed to require any
Magistrate or Judge to examine or impound, if he does not
think fit to do so, any instrument coming before him in the
course of any criminal proceeding;
(b) in the case of a Judge of the High Court, the duty of
examining and impounding any instrument under this
section shall be performed by the Registrar.

Instruments not duly stamped inadmissible in evidence


52. (1) No instrument chargeable with duty shall be admitted in
evidence for any purpose by any person having by law or consent of
parties authority to receive evidence, or shall be acted upon,
registered, or authenticated by any such person or by any public
officer, unless such instrument is duly stamped:
Provided that
(a) any such instrument shall, subject to all just exceptions, be
admitted in evidence on payment of the duty and the
penalty, if any, chargeable in respect thereof under section
43 or 47A;
(b) nothing herein contained shall prevent the admission of
any instrument in evidence in any criminal court;
(c) nothing herein contained shall prevent the admission of
any instrument in evidence in any court when such
instrument has been executed by or on behalf of the
Government of Malaysia or of any State or of the

Stamp

63

Government of any other country or where it bears the


certificate of the Collector as provided by this Act.
(2) No instrument executed outside Malaysia and relating to any
property situate, or to any matter or thing done or to be done, in any
part of Malaysia shall, except in the circumstances mentioned in
subsection (1), be given in evidence or referred to or used in any
manner in any proceedings in any Court or before any tribunal, board,
commission, committee or similar body by whatever name called,
established under any written law, unless it is duly stamped in
accordance with the law in force in that part of Malaysia at the time
when it was first executed relating to stamp duty which would have
been chargeable on any such instrument if it had been executed in
that part of Malaysia.
(3) In subsection 2, part of Malaysia includes any territory
which is part of Malaysia at the time of the proceedings,
notwithstanding that it was not part of Malaysia when the instrument
was executed.

Instruments impounded how dealt with


53. (1) When the person impounding an instrument under section
51 has by law or consent of parties authority to receive evidence and
admits such instrument in evidence on payment of duty and penalty,
if any, he shall, as soon as may be convenient, send such instrument,
together with the amount of the duty and penalty, if any, paid in
respect thereof, to the Collector; and the Collector shall stamp such
instrument in accordance with section 43 or 47A and shall return it to
the person who sent it to him.
(2) In every other case in which an instrument is impounded
under section 51, the person impounding the same shall send it
forthwith to the Collector; and the Collector, on payment of the duty
and penalty, if any, chargeable in respect thereof under section 43 or
47A, shall stamp such instrument and shall return it to the person who
sent it to him, but if such duty and penalty, if any, be not paid, he
shall retain such instrument.

64

Laws of Malaysia

ACT 378

(3) Any penalty levied under this section may be reduced or


remitted in the manner provided for by subsection 47A(2).

54. (Deleted by Act 476).

Agreements evidenced by letters how stamped


55. (1) Where a contract or agreement of any kind is effected by
correspondence consisting of two or more letters and any one of the
letters bears the proper stamp the contract or agreement shall be
deemed to be duly stamped.
(2) Where an agreement is evidenced by one or more letters
between parties, which letters were not stamped before being used, it
shall be lawful for the Collector, on being satisfied that the omission
to have the letter or letters stamped did not arise from an intention to
evade the payment of stamp duty, to affix the proper stamp on the
letter or any one of the letters evidencing the contract on payment of
the duty and a further duty of ten ringgit by way of adjudication fee.
(3) On stamping any letter under this section the Collector shall
write or cause to be written on the letter the words Duly Stamped
and shall add his signature or initials thereto and the day, month and
year on which the letter was stamped.
(4) Where a letter is so stamped all the letters forming together
the agreement may be used in evidence to prove the agreement stated
or partly stated in the letter so stamped.

Recovery of duty and penalty


56. When any duty or penalty has been paid in respect of any
instrument by any person, any by agreement or under this Act or of
any other written law in force at the time when such instrument was
executed or first executed some other person was liable to pay the

Stamp

65

duty on such instrument, the first mentioned person shall be entitled


to recover from such other person the amount of the duty or penalty
so paid, and for the purpose of such recovery any certificate granted
in respect of such instrument by the Collector shall be conclusive
evidence as to the amount of the duty and penalty paid and the person
by whom they were paid.

PART VIII
ALLOWANCE FOR SPOILED STAMPS
Allowance for spoiled stamps
57. Subject to any rules which may be made under this Act and to
the production of such evidence by statutory declaration or otherwise
as the Collector may require, allowance shall be made by the
Collector for stamps spoiled in the following cases:
(a) the stamp on any paper inadvertently and undesignedly
spoiled, obliterated or by any means rendered unfit for the
purpose intended, before the paper bears the signature of
any person or any instrument written thereon is executed
by any party;
(b) any adhesive stamp which has been inadvertently and
undesignedly spoiled or rendered unfit for use and has not
in the opinion of the Collector been affixed to any paper;
(c) (Deleted by Act 661);
(d) the stamp on any promissory note signed by or on behalf
of the maker which has not been made use of in any
manner whatever or delivered out of his hands;
(e) the stamp on any promissory note which from any
omission or error has been spoiled or rendered useless,
although the same, being a promissory note, may have
been delivered to the payee, provided that another
completed and duly stamped promissory note, is produced

66

Laws of Malaysia

ACT 378

identical in every particular except in correction of the


error or omission, with the spoiled note;
(f) the stamp used for any of the following instruments:
(i) an instrument executed by any party thereto, but
afterwards found to be absolutely void from the
beginning;
(ii) an instrument executed by any party thereto, but
afterwards found unfit, by reason of any error or
mistake therein, for the purpose originally
intended;
(iii) an instrument executed by any party thereto, which
has not been made use of for any purpose
whatever, and which by reason of the inability or
refusal of some necessary party to sign the same or
to complete the transaction according to the
instrument is incomplete and insufficient for the
purpose for which it was intended;
(iv) an instrument executed by any party thereto, which
by reason of the inability or refusal of any person
to act under the same, or for want of registration
within the time required by law, fails of the
intended purpose or becomes void;
(v) an instrument executed by any party thereto, which
is inadvertently and undesignedly spoiled, and in
lieu whereof another instrument made between the
same parties and for the same purpose is executed
and duly stamped, or which becomes useless in
consequence of the transaction intended to be
thereby effected being effected by some other
instrument duly stamped;

Stamp

67

(vi) in the case of an instrument executed by any party


implementing a sale under a duly stamped
agreement for sale and purchase but afterwards
became cancelled, annulled, rescinded or is
otherwise not performed:
Provided as follows:
(a) that the application for relief is made within twelve
months after the stamp has been spoiled or become
useless or in the case of an executed instrument after the
date of the instrument, or, if it is not dated, within twelve
months after the execution thereof by the person whom it
was first or alone executed or within such further time as
the Collector may prescribe in the case of any instrument
sent abroad for execution or when from unavoidable
circumstances any instrument for which another has been
substituted cannot be produced within the said period;
(aa) that the application for relief is made within two months
from the date the instrument of transfer is rejected by the
Registrar of Titles; or
(b) that in the case of an executed instrument no legal
proceeding has been commenced in which the instrument
could or would have been given or offered in evidence,
and that the instrument is given up to be cancelled.

Allowance for misused stamps


58. When any person has inadvertently used for an instrument
liable to duty a stamp of greater value than was necessary, or has
inadvertently used a stamp for an instrument not liable to any duty,
the Collector may, on application made within twelve months after
the date of the instrument, or, if it is not dated, within twelve months
after the execution thereof by the person by whom it was first or
alone executed, and upon the instrument, if liable to duty, being
stamped with the proper duty cancel and allow as spoiled the stamp
so misused.

68

Laws of Malaysia

ACT 378

Allowance, how to be made


59. In any case in which allowance is made for spoiled, unused or
misused stamps, the Collector shall give in lieu thereof the same
value in money.

Stamp to include official receipt


59A. For the purposes of paragraph 57(f), sections 58 and 59,
stamp includes an official receipt or a stamp certificate.

PART IX
OFFENCES AND PENALTIES
Not cancelling adhesive stamps
60. Any person who, being required by law to cancel an adhesive
stamp, neglects or refuses duly and effectually to do so in the manner
prescribed by subsection 7(4) shall be liable to a fine not exceeding
five hundred ringgit.

Failure to frank documents


60A. Any authorized person who, being required by law to frank any
instruments, fails to do so within thirty days from the date the
instrument is executed shall be liable to a fine of not less than two
hundred ringgit and not more than two thousand ringgit.

Penalty for not setting forth all the facts and circumstances
61. Any person who with intent to evade the payment of duty

Stamp

69

(a) executes any instrument in which all the facts and


circumstances are not truly and fully set forth as required
by section 5; or
(b) being employed or concerned in or about the preparation
of any instrument neglects or omits fully and truly to set
forth therein all the said facts and circumstances;
shall be liable to a fine not exceeding two thousand five hundred
ringgit.

62.

(Deleted by Act 476).

Penalty for executing and signing documents not duly stamped


63. (1)

Any person who

(a) with intent to evade the payment of duty, draws, makes,


executes or signs, otherwise than as a witness, any
instrument whatsoever chargeable with duty without the
same being duly stamped;
(b) having drawn, made, executed or signed, other wise than
as a witness, any instrument whatsoever chargeable with
duty without the same being duly stamped, fails, without
lawful excuse, to procure the due stamping thereof within
the time within which such instrument may be stamped
without penalty under this Act; or
(c) issues, endorses, transfers or presents for acceptance or
payment or accepts, pays or receives payment of or in any
manner negotiates any cheque or promissory note without
the same being duly stamped;
shall be liable to a fine not exceeding one thousand five hundred
ringgit.

70

Laws of Malaysia

ACT 378

(2) When any penalty has been paid in respect of any instrument
under section 43, 47A, 52 or 53, the amount of such penalty shall be
allowed in reduction of the fine, if any, subsequently imposed under
this section in respect of the same instrument upon the person who
paid such penalty.
(3) Subsection (1) shall not apply in respect of any instrument
which has been indorsed as stamped in due time under section 40.
(4) Paragraph (1)(b) shall not apply to the person mentioned in
the second column hereunder in respect of the execution or signature
of such of the instruments appearing in the First Schedule as are
specified in the corresponding line of the first column
Title of instrument as
described in Schedule A

Persons not liable to penalty

Conveyance,
assignment,
transfer or absolute bill of
sale

Vendor, assignor or transferor

Lease or agreement for lease

The lessor

Charge, agreement for a


charge, bond, debenture,
covenant and bill of sale
by way of security

The chargee or obligee in the case


of a transfer or reconveyance the
transferor, assignor or disposer or
the person giving up the security

(5) For the purposes of this section a cheque issued in pursuance


of section 9 shall be deemed to be duly stamped.

Penalty for failure to execute and transmit contract note


64. Any person who, being required under section 32A to make and
execute a contract note and transmit the note as so required, refuses
or neglects to make and execute the contract note or to so transmit the

Stamp

71

note shall be liable to a fine not exceeding one thousand five hundred
ringgit.

Penalty for post-dating bills


65. Any person who with intent to evade the payment of duty
(a) draws, makes or issues any promissory note bearing a date
subsequent to that on which such note is actually drawn or
made; or
(b) knowing that such note has been so postdated, endorses,
transfers, presents for acceptance or payment or accepts,
pays or receives payment of such note or in any manner
negotiates the same,
shall be liable to a fine not exceeding two thousand five hundred
ringgit.

66. (Deleted by Act A723).

Penalty for not making out policy other than on sea insurance or
making one not duly stamped
67. Any person who
(a) receives, or takes credit for any premium or consideration
for any insurance other than a sea insurance, and does not
within one month after receiving or taking credit for the
premium or consideration make out and execute a duly
stamped policy of insurance; or
(b) makes, executes, or delivers out, or pays or allows in
account, or agrees to pay or allow in account, any money
upon or in respect of any policy other than a policy of sea
insurance which is not duly stamped, shall be liable to a
fine not exceeding one thousand ringgit.

72

Laws of Malaysia

ACT 378

Provided that on application and for good cause shown by any


person the Minister of Finance may extend the period mentioned in
paragraph (a) of this section to a period not exceeding three months
in favour of such person.

Penalty for assuring on sea insurance unless under policy duly


stamped
68. (1)

Any person who

(a) becomes an assurer upon any sea insurance or enters into


any contract for sea insurance, or directly or indirectly
receives or contracts or takes credit in account for any
premium or consideration for any sea insurance, or
knowingly takes upon himself any risk, or renders himself
liable to pay, or pays any sum of money upon any loss,
peril or contingency relative to any sea insurance, unless
the insurance is expressed in a policy of sea insurance
duly stamped;
(b) makes or effects or knowingly procures to be made or
effected any sea insurance, or directly or indirectly gives
or pays, or renders himself liable to pay, any premium or
consideration for any sea insurance, or enters into any
contract for sea insurance unless the insurance is
expressed in a policy of sea insurance duly stamped; or
(c) is concerned in any fraudulent contrivance or device, or is
guilty of any wilful act, neglect or omission with intent to
evade the duties payable on policies of sea insurance or
whereby the duties may be evaded,
shall for every such offence be liable to a fine not exceeding one
thousand ringgit.

Stamp

73

Broker or agent
(2) Every broker, agent or other person negotiating or transacting
any sea insurance contrary to the true intent and meaning of this Act,
or executing any policy of sea insurance upon paper not duly
stamped, shall for every such offence be liable to a fine not exceeding
one thousand ringgit and shall not have any legal claim to any charge
for brokerage, commission or agency or for any money expended or
paid by him with reference to the insurance, and any money paid to
him in respect of any such charge shall be deemed to be paid without
consideration, and shall remain the property of his employer.

Penalty for making or issuing pretended copies


(3) If any person makes or issues, or causes to be made or issued,
any document purporting to be a copy of a policy of sea insurance
and there is not at the time of the making or issue in existence a
policy duly stamped whereof the said document is a copy, he shall for
such offence, in addition to any other fine or penalty to which he is
liable, be liable to a fine not exceeding one thousand ringgit.
Penalty for issuing share warrant, etc., not duly stamped
69. (1) If a share warrant or stock certificate to bearer is issued
without being duly stamped, the company issuing the same, and also
every person who, at the time when it is issued, is the managing
director or secretary or other principal officer of the company, shall
be liable to a fine not exceeding one thousand five hundred
ringgit.
(2) If any person whose office it is to enrol, register, or enter in or
upon any rolls, books or records any instrument chargeable with duty,
enrols, registers or enters any such instrument not being duly
stamped, he shall be liable to a fine not exceeding one thousand five
hundred ringgit.
70. (Deleted by Act A723).

74

Laws of Malaysia

ACT 378

Penalty for unauthorized dealing in stamps


71. Any person who, not being duly appointed in accordance with
rules made under section 82 to sell and distribute stamps, deals in any
way in stamps shall, for every such offence, be liable to a fine not
exceeding one thousand ringgit.

Penalty for hawking stamps


72. (1) Any person, who hawks or carries about for sale or
exchange any stamps shall, in addition to any other fine or penalty to
which he may be liable, be liable to a fine not exceeding one
thousand ringgit.
(2) All stamps which are found in the possession of the offender
shall be forfeited, and shall be delivered to the Collector to be
disposed of as he thinks fit.

Penalty relating to stamp certificates


72A.

Any person who


(a) sells or offers for sale a stamp certificate;
(b) fraudulently attaches a stamp certificate to an instrument
other than the instrument for which the stamp certificate
was issued;
(c) fraudulently detaches a stamp certificate or fraudulently
causes a stamp certificate to be detached from the
instrument;
(d) counterfeits, or knowingly performs any part of the
process of counterfeiting, any stamp certificate issued by
the Collector;

Stamp

75

(e) sells or offers for sale any certificate which he knows or


ought reasonably to know to be a counterfeit of any stamp
certificate issued by the Collector;
(f) has in his possession any certificate which he knows to be
a counterfeit of any stamp certificate, intending to use or
dispose of it as a genuine stamp certificate in order that it
may be used as a genuine stamp certificate; or
(g) uses as a genuine stamp certificate knowing it to be a
counterfeit of any stamp certificate,
shall be guilty of an offence and shall be liable on conviction to a fine
not exceeding five thousand ringgit.

Postage stamps
73. Nothing in this Act shall prevent the sale of stamps at any post
office established under the *Post Office Act 1947 [Act 211], nor the
sale of stamps by any person licensed for that purpose under
regulations made under that Act, nor the sale or exchange of postage
or revenue stamps for philatelic purposes.

Fraud in relation to duty


74. Any person who practises or is concerned in any fraudulent act,
contrivance or device not specially provided for by law, with intent to
defraud the Government of any duty, shall be liable to a fine of five
thousand ringgit.

Recovery from persons leaving Malaysia


74A. (1) The Collector, where he is of the opinion that any
person is about or likely to leave Malaysia without paying any duties,
*NOTEThe Post Office Act 1947 [Act 211] has since been repealed by the Postal Services Act 1991
[Act 465]see subsection 50(1) of Act 465 which then has been repealed by the Postal Services Act 2012
[Act 741] see subsection 110(1) of Act 741.

76

Laws of Malaysia

ACT 378

penalties or other sums required to be paid under this Act, may issue
to any Commissioner of Police or Director of Immigration a
certificate containing particulars of those duties, penalties or sums so
payable with a request for that person to be prevented from leaving
Malaysia unless and until he pays all the duties, penalties or sums so
payable or furnishes security to the satisfaction of the Collector for
their payment.
(2) Subject to any order issued or made under any written law
relating to banishment or immigration, any Commissioner of Police
or Director of Immigration who receives a request under subsection
(1) in respect of any person shall take or cause to be taken all such
measures as may be necessary to give effect to it.
(3) The Collector shall cause notice of the issue of the certificate
under subsection (1) to be served personally or by registered post on
the person to whom the certificate relates:
Provided that the non-receipt of the notice by that person shall not
invalidate anything done under this section.
(4) Where a person in respect of whom a certificate has been
issued under subsection (1)
(a) produces a written statement signed on or after the date of
the certificate by the Collector to the effect that all the
duties, penalties or sums specified in the certificate have
been paid or that security has been furnished for the
payment; or
(b) pays all the duties, penalties or sums specified in the
certificate to the officer in charge of a police station or to
an immigration officer,
the statement or the payment, as the case may be, shall be sufficient
authority for allowing that person to leave Malaysia.
(5) No legal proceedings shall be instituted or maintained against
the Government, a State Government, a police officer or any other

Stamp

77

public officer in respect of anything lawfully done under


subsection 74B(2).
(6)

In this section

Commissioner of Police includes a Chief Police Officer;


Director of Immigration means the Director of Immigration in
West Malaysia, Sabah or Sarawak;
immigration officer means a public officer having official
duties in connection with the control of immigration into Malaysia or
any part of Malaysia.

Leaving Malaysia without payment of duties, etc.


74B. (1) Any person, to whom a certificate has been issued in
respect of him under section 74A, voluntarily leaves or attempts to
leave Malaysia without paying all the duties, penalties or sums
specified in the certificate or without furnishing security to the
satisfaction of the Collector for the payment thereof shall be guilty of
an offence and shall, on conviction, be liable to a fine not exceeding
five thousand ringgit.
(2) A police officer or immigration officer may arrest without
warrant any person whom he reasonably suspects to be committing or
is about to commit an offence under this section.
(3) In this section, immigration officer has the same meaning as
in section 74A.

Institution and conduct of prosecution


75. (1) No prosecution in respect of any offence punishable under
this Act shall be instituted without the sanction of the Public
Prosecutor.
(2)

The Collector may compound any such offence.

78

Laws of Malaysia

ACT 378

(3) The amount of any such composition shall be a debt due to


the Government and shall be recoverable by any of the ways and
means in force for the time being for the recovery of debts due to the
Government.
PART X
MISCELLANEOUS
Books, etc., in the custody of public officers may be inspected
without fee
76. Every public officer having in his custody any registers, books,
records, papers, documents or proceedings the inspection whereof
may tend to secure any duty, or to prove or lead to the discovery of
any fraud or omission in relation to any duty, shall at all reasonable
times permit any person authorized in writing by the Collector to
inspect for such purpose the registers, books, records, papers,
documents or proceedings and to take such notes and extracts as he
may deem necessary without fee or charge.

Collector may administer oaths


77. The Collector is authorized to administer all affirmations and
oaths which may be necessary for the purposes of this Act.

Electronic medium
77A. (1) For the purposes of this Act, the Collector may by an
electronic medium allow a registered person, without the need for the
instrument to be presented to the Collector
(a) to obtain an assessment of stamp duty and any penalty, if
any, on an instrument;

Stamp

79

(b) to pay stamp duty and any penalty, if any, on an


instrument by electronic funds transfer or otherwise, in
accordance with the assessment;
(c) to obtain a stamp certificate in relation to the assessment;
or
(d) to obtain an indorsement of stamp duty in a case where
section 37 applies.
(2) In this section, registered person means any person who
applies to the Collector to register to use the electronic medium.
(3) All conditions and specifications relating to the use of
electronic medium shall be determined by the Collector.
Electronic assessment and stamping of instruments
77B. (1) For the purposes of this Act, the issue of a stamp
certificate for an instrument shall state an assessment of a duty and
any penalty, if any, in relation to the instrument.
(2) A registered person must, on receipt of a stamp certificate
issued for the instrument by the Collector, immediately attach the
stamp certificate to the instrument.
Revision of acts of Collector
78. All decisions, orders and acts of the Collector shall be open to
revision by the Minister of Finance and may by him be ordered to be
revised, altered or modified; and any instrument purporting to have
been stamped or re-stamped by order of the Minister of Finance shall
be received as duly stamped under this Act.

80

Laws of Malaysia

ACT 378

Responsibility for loss or damage


79. The Government shall not be responsible for the loss of or for
damage to any instrument tendered for stamping whilst in the custody
of the Collector, nor shall any officer of the Stamp Office be
responsible for such loss or damage, unless he has caused it wilfully,
fraudulently or by gross negligence.

Power to exempt, reduce or remit duties


80. (1) The Minister of Finance may by order published in the
Gazette exempt from duty, which would otherwise be chargeable
under this Act, any class of instrument or any of the instruments
belonging to that class, or any instruments when executed by or in
favour of any particular class of persons, or by or in favour of any
members of that class.
(1A) The Minister of Finance may in any particular case
(i)

exempt from duty any instrument or all


instruments in relation to any scheme which
would otherwise be chargeable under this Act; or

(ii) reduce or remit the duties with which any


instrument or all instruments in relation to any
scheme are chargeable.
(2) The Minister of Finance may by order published in the
Gazette reduce or remit, in the whole or any part of Malaysia, the
duties with which any particular class of instruments, or any of the
instruments belonging to such class, or any instruments when
executed by or in favour of any particular class of persons, or by or in
favour of any members of such class, are chargeable.
(3) Any order made under subsection (1) or (2) or any
exemption, reduction or remission made under subsection (1A) may
be made to operate retrospectively to any date, whether before or

Stamp

81

after the commencement of this Act, and may relate to duties


chargeable under any written law repealed by this Act as well as to
duties chargeable under this Act, and, in the case of any such
exemption, remission or reduction, any moneys paid in respect
thereof shall be refunded.

Fund for Tax Refund


80A. (1) There shall be paid from time to time into the Fund
established under section 111B of the Income Tax Act 1967 such
amount of duty collected under this Act as may be authorized by the
Minister.
(2) The money of the Fund referred to in subsection (1), shall be
applied for the making of a refund of any duty or any other payment
required to be made by the Collector under this Act.
(3) Section 14A of the Financial Procedure Act 1957 shall not
apply to any refund of any duty or any other payment required to be
made under this Act.
(4) Where the Collector is authorized or required by this Act to
make any refund of any duty or any other payment required under
this Act, he shall certify the amount of the sum to be refunded or paid
and cause the refund or payment to be made forthwith.

Power to compound duties in case of issue of bonds, etc.


81. The Minister of Finance may by order published in the Gazette
provide for the composition or consolidation of duties in the case of
issues by any incorporated company or other body corporate of
debentures, bonds or other marketable securities.

Rules
82. The Minister of Finance may make rules

82

Laws of Malaysia

ACT 378

(a) to prescribe the revenue stamps to be issued under this Act


for the payment of stamp duty, to provide for matters
relating to the issue and validity of such stamps, and to
regulate the supply and sale of stamps, including revenue
stamps, the persons by whom alone such sale is to be
conducted, and the duties and remuneration of such
persons;
(aa) to prescribe the stamp certificate and official receipt to be
issued under this Act for the payment of stamp duty, to
provide for matters relating to issue and validity of the
stamp certificate and official receipt;
(b) providing for the payment by means of impressed stamps
of the duties chargeable upon any of the instruments
specified in the First Schedule and prescribing the manner
of denoting such payment;
(c) generally for carrying out the purposes of this Act.

Repeal
83. The Ordinance, Enactments and Proclamations mentioned in the
Fourth Schedule are hereby repealed to the extent specified in the
third column of such Schedule:
Provided that any subsidiary legislation, appointments and
exemptions made or granted under the written laws repealed by this
section shall continue in force and have effect as if they had been
made or granted under this Act until superseded by subsidiary
legislation, appointments and exemptions made or granted under this
Act.

83

Laws of Malaysia

ACT 378

FIRST SCHEDULE
[Section 4]
INSTRUMENTS CHARGEABLE WITH STAMP DUTY
Item

Description of Instrument

(Deleted by Act 274).

AFFIDAVIT, STATUTORY DECLARATION


OR DECLARATION IN WRITING on oath or
affirmation, made before a person authorized by
law to administer an oath

Proper Stamp Duty

RM10.00

Exemptions
Affidavit or Declaration in writing made

(i)

for the immediate purpose of being filed


or used in any court or before any Judge
or officer of any court;

(ii)

for the sole purpose of enabling any


person to receive any pension or
charitable allowance;

(iii)

by a surety for an officer of the


Government with regard to the suretys
means;

(iv)

by any person on acceptance of an


appointment in the service of the
Government;

(v)

under section 8 of the* Post Office Act


1947;

(vi)

for renewal of Bills of Sale;

(vii)

by a public officer that he or she has


attained the appropriate age entitling such
officer to a pension;

NOTEThe Post Office Act 1947 [Act 211] has since been repealed by the Postal Services Act 1991
[Act 465]see subsection 50(1) of Act 465 which then has been repealed by the Postal Services Act 2012
[Act 741] see subsection 110(1) of Act 741.

84

Laws of Malaysia
(viii)
(ix)

ACT 378

for the Collector under section 57 of this


Act; or
pursuant to any statute requirement or in
accordance with the directions of any
Government or Agency.

AGREEMENT for a lease

See lease

AGREEMENT OR MEMORANDUM OF
AGREEMENT made under hand only, and not
otherwise specially charged with any duty,
whether the same is only evidence of a contract
or obligatory on the parties from its being a
written instrument.

RM10.00

Exemptions
Agreement or Memorandum:
(a)

for or relating to the sale of any goods,


wares or merchandise other than a hirepurchase agreement;

(b)

for service or personal employment where


the wages do not exceed RM300 per
month, and any agreement between the
master and mariners of any vessel or boat
for wages;

(c)

the matter whereof is of a value of less


than RM300;

(d)

for the reference of any matter to


arbitration;

(e)

for the payment of interest on money


deposited in any bank or with any banker;

(f)

for the repurchase of negotiable


certificate of deposit whose issue has been
authorized by Bank Negara Malaysia.

NoteAn agreement for or relating to the supply


of goods on hire, whereby the goods in
consideration of periodical payments will or may

Stamp

85

become the property of the person to whom they


are supplied, shall be charged with stamp duty as
an agreement, or, if under seal, as a deed
4A
5

(Deleted by Act A723).


ANNUITY:

See lease

Conveyance in consideration of, and instrument


creating by way of sale or gift

See Conveyance on
Sale and sections 19
and 22

Instrument creating by way of security

The same duty as a


charge or mortgage for
the amount deemed to
be secured thereby.

APPOINTMENT of a RECEIVER under


mortgage

RM10.00

APPOINTMENT of a new TRUSTEE, and


APPOINTMENT in execution of a Power, of any
property, or of any share or interest in any
property, by any instrument not being a Will

RM10.00

(Deleted by Act 274).

(Deleted by Act 274).

10

ARTICLES OF ASSOCIATION of a company

11

(Deleted by Act 274).

12

ASSIGNMENT:

RM100.00

By way of security or of any security

See Charge

Upon a sale or otherwise

See Conveyance

13

ASSURANCE

See Policy of Insurance

14

(Deleted by Act 274).

15

(Deleted by Act 274).

16

(Deleted by Act 274).

17

(Deleted by Act 476).

86

Laws of Malaysia

18

(Deleted by Act 476).

19

(Deleted by Act 476).

20

BILL OF SALE:

ACT 378

Absolute

See Conveyance

By way of security

See Charge

21

BOND for securing the payment or repayment of


money or the transfer or retransfer of stock

22

BOND, COVENANT, LOAN, SERVICES,


EQUIPMENT LEASE AGREEMENT OR
INSTRUMENT of any kind whatsoever:
(1)

(a)

(b)

(2)

See Charge

being the only or principal or


primary security for any annuity
(except upon the original creation
thereof by way of sale or security,
and except a superannuation
annuity), for the term of life or any
other indefinite period
for every RM100 and also for any
fractional part of RM100 of the
annuity or sum periodically payable

RM1.00

for any sum or sums of money, not


being interest for any principal sum
secured by a duly stamped
instrument, nor rent reserved by a
lease or tack.

The same ad valorem


duty as a charge or
mortgage for such total
amount.

Being a collateral or auxiliary or


additional or substituted security for any
of the above mentioned purposes where
the principal or primary instrument is
duly stamped
(a)

where the total amount to be


ultimately payable be ascertained

One-fifth of the duty on


the principal or primary
security, but so as not
to exceed RM10.00.

Stamp
(b)

in any other case

87
25 sen

For every RM100 and also for any


fractional part of RM100 of the
annuity or sum periodically
payable.

23

(3)

Being a grant or contract for payment of


a superannuation annuity, that is to say a
deferred life annuity granted or secured to
any person in consideration of annual
premiums payable until he attains a
specified age, and so to commence on his
attaining that age

RM10.00

(4)

Being the security for payment or


repayment of money made for the
purpose of pursuing higher education in
higher educational institutions.

RM10.00

(5)

Being the security for securing the


payment for the provision of services or
facilities or to other matters or things in
connection with the lease of any
immovable property.

The same duty as a


LEASE

(6)

Being the security for securing the


payment or repayment of money for the
purchase of goods (within the meaning
given under the First Schedule of the Hire
Purchase Act 1967) in accordance with
the Syariah principles.

RM10.00

BOND, CHARGE, MORTGAGE or other


INSTRUMENT
executed
by
way
of
INDEMNITY or of SECURITY for the due
execution of an office, or for the discharge of
liabilities, arising out of the execution thereof, or
to account for money received by virtue thereof

RM10.00

Exemptions
(a)

Bond executed by an officer of the


Government or his surety to secure the
due execution of an office or the due
accounting for money or other payments
secured by virtue thereof.

88

24

Laws of Malaysia
(b)

Bond for securing the refund to


Government of amounts overpaid to
persons appointed by Government
officers to receive their salary or
allowance when absent on leave.

(c)

Bonds required to be executed under the


provisions of the Criminal Procedure
Code.

BOND on obtaining letters of administration


where the estate exceeds RM50,000.00.

ACT 378

RM10.00

Exemptions
Bond given by any person when the estate to be
administered does not exceed RM50,000.00 in
value.
25

BOND of any kind whatsoever not specifically


charged with any duty

26

(Deleted by Act 274).

27

CHARGE OR MORTGAGE, AGREEMENT


FOR A CHARGE OR MORTGAGE, (including
that under the Syariah) BOND, CONVENANT,
DEBENTURE (not being a marketable security)
BILL OF SALE by way of security and
WARRANT OF ATTORNEY to confess and
enter up judgment:
(a)

RM10.00

Being the only or principal or primary


security (other than an equitable mortgage
or an assignment of receivables or the
kind mentioned in paragraph (d)) for the
payment or repayment of money
(i)

where the loan is to a small and


medium enterprise or financing
is provided to a small and
medium enterprise according to
the syariah
For an amount not exceeding

RM0.50

for

every

Stamp

89

RM250,000 of the aggregate


loans or of the aggregate
financing under the syariah in
a calendar year

RM1,000 or fractional
thereof

For each additional RM1,000


not exceeding RM1,000,000

RM2.50 for every


RM1,000 or fractional
thereof

For each additional RM1,000


or part thereof

RM5.00

(ii)

where the loans is a foreign


currency loan or the financing
was made according to the
syariah in currencies other than
the ringgit

(iii)

in any other case


For each RM1,000 or part
thereof

(b)

Being a collateral or auxiliary or


additional or substituted security (other
than an equitable mortgage) or by way of
further assurance for the abovementioned purpose where the principal or
primary security is duly stamped.

(c)

An equitable mortgage

(d)

A charge or a mortgage on or an
assignment by way of security of
accounts receivables to a bank, merchant
bank or finance company licensed under
the Banking and Financial Institutions
Act 1989 or under the Islamic Banking
Act 1983 or a scheduled institution as
defined under section 2 of the Banking
and Financial Institutions Act 1989,
pursuant to an agreement for discounting
invoices or hire purchase receivables

RM5.00 for every


RM1,000
or
part
thereof but the total
duty payable shall not
exceed RM500

RM5.00

One-fifth of the duty on


the principal or security
but so as not to exceed
RM10.00

One-half of the duty


which
would
be
chargeable
on
a
mortgage
for
the
amount secured

RM10.00

90

Laws of Malaysia
(e)

ACT 378

Transfer, assignment or disposition of


any charge or mortgage, bond, covenant
or debenture (not being a marketable
security) or of any money or stock
secured) by any such instrument or by
any warrant of attorney to enter up
judgment or by any judgment

Two-fifths of the duty


which
would
be
chargeable on a charge
or mortgage for the
amount transferred

And also where any further money is


added to the money already secured

The same duty as a


principal security for
such further money

(f)

(Deleted by Act A723).

(g)

Charge or mortgage executed in


pursuance of a duly stamped agreement
for the same, on production of such
agreement to the Collector

(h)

In any other case

RM10.00

RM10.00

28

(Deleted by Act 274).

29

CHEQUE (unless compounded for)

15 cent

30

CONTRACT

See Agreement.

31

CONTRACT NOTE:

Relating to the sale of any shares, stock or


marketable securities in companies incorporated
in Malaysia or elsewhere
For every RM1,000 or fractional part of
RM1,000 of the value of any shares, stock or
marketable securities
32

RM1.00

CONVEYANCE, ASSIGNMENT, TRANSFER


OR ABSOLUTE BILL OF SALE:
(a)

On sale of any property (except stock,


shares, marketable securities and accounts

For every RM100 or


fractional
part
of

Stamp
receivables or book debts of the kind
mentioned in paragraph (c))

(b)

On sale of any stock, shares or


marketable securities, to be computed on
the price or value thereof on the date of
transfer, whichever is the greater

91
RM100 of the amount
of the money value of
the consideration or the
market value of the
property, whichever is
the greater
(i)

RM1.00 on the
first
RM100,000;

(ii)

RM2.00 on any
amount
in
excess
of
RM100,000 but
not exceeding
RM500,000;

(iii)

RM3.00 on any
amount
in
excess
of
RM500,000.

RM3.00

For every RM1,000 or fractional part of


RM1,000
(c)

On the absolute sale of any accounts


receivables or book debts to a bank,
merchant bank, or finance company
licensed under the Banking and Financial
Institutions Act 1989 or under the Islamic
Banking Act 1983 or a scheduled
institution as defined under section 2 of
the Banking and Financial Institutions
Act 1989, pursuant to a factoring
agreement

RM10.00

(d)

Of any property by way of security or any


security other than a marketable security

See Charge

(e)

Of any property as above where the


transaction is between trustees and
where

92

Laws of Malaysia

ACT 378

(i)

the beneficial interest in the


property passes

Duty as in (a), (b), or


(c)

(ii)

the beneficial interest in the


property does not pass

RM10.00

(f)

Of any property, for the purpose of


effectuating the appointment of a new
trustee or the retirement of a trustee
although no new trustee is appointed

RM10.00

(g)

Of any property by way of settlement

See Settlement

(h)

Of any property by way of gift (whether


by way of voluntary disposition or
otherwise)

See Gift and subsection


16(1)

(i)

Of any kind not otherwise specially


charged with duty

RM10.00

Exemptions
(a)

Transfers on sale of land for the recovery


of land revenue;

(b)

Transfers by endorsement
(i)

of a bill of exchange, cheque or


promissory note;

(ii)

of a bill of lading, warrant for


goods or other mercantile
document of title to goods;

(iii)

of a policy of insurance other than


a policy of life insurance;

(iv)

of charges on rates and taxes


authorized by any written law for
the time being in force in
Malaysia;

(v)

of securities of the Government of


Malaysia or of any State;

Stamp
(c)

Transfer of units of a unit trust;

(d)

Transfer or assignment on sale of any


copyright, trade mark, patent or any
similar right.

33

(Deleted by Act 274).

34

COUNTERPART OR DUPLICATE of any


instrument chargeable with duty, and in respect
of which the proper duty has been paid

35

93

(a)

If the duty with which the original


instrument is chargeable does not exceed
RM10.00

The same duty as the


original

(b)

In any other case

RM10.00

COVENANT:
Any separate instrument or deed of covenant (not
being an instrument or deed chargeable with ad
valorem duty as a conveyance or charge or
mortgage) made on the sale, charge or mortgage
of any property, or of any right or interest
therein, and relating solely to the conveyance or
enjoyment of or the title to the property sold,
charged or mortgaged, or to the production of the
documents of title relating thereto, or to all or
any of the matters aforesaid

RM10.00

36

DEBENTURE

See
Marketable
Security and Charge

37

DECLARATION of any use or trust of or


concerning any property by any writing, not
being a will, or an instrument chargeable with
duty as a settlement

RM10.00

38

DEED of any kind not described in this


Schedule

RM10.00

39

DISCHARGE OF CHARGE

40

DISSOLUTION OF PARTNERSHIP

See
Re-Conveyance,
etc.
See Partnership.

41

DUPLICATE

See Counterpart.

94

Laws of Malaysia

42

EQUITABLE MORTGAGE

43

EXCHANGE. Any instrument whereby an


exchange of any property is effected.

ACT 378
See
Charge
Mortgage).

(or

(a)

In the case
specified
in
section
20A:
see
that
section;

(b)

In any other
case:
RM10.00.

44

(Deleted by Act 274).

45

FURTHER CHARGE

See Charge.

46

GIFT

See Subsection 16(1).

47

INDEMNITY BOND

See Bond (Item 23).

48

INSURANCE

See Policy of Insurance.

49

LEASE OR AGREEMENT FOR LEASE: of any


immovable property and for securing the
payment for the provision of services or facilities
or to other matters or things in connection with
such lease:

(a)

(b)

Without fine or premium when the


average rent and other considerations
calculated for a whole year

When the Lease is for a period


Not
Exceeding
Exceeding
exceeding
one but
three or for
one year
not
any indefinite
exceeding
period
three years

(i)

Does not exceed RM2,400

Nil

Nil

Nil

(ii)

For every RM250 or part thereof


in excess of RM2,400

1.00

2.00

4.00

In consideration of a fine or premium


and without rent of other considerations

The same duty as for a


conveyance for a sum
equal to the amount of
such consideration.

Stamp

95

(c)

In consideration of a fine or premium


and reserving a rent or other
considerations

The same duty as for a


conveyance on sale in
consideration of the
fine or premium and a
lease for the rent.

(d)

Where a percentage or proportion, or the


value of a percentage or proportion, of
the produce of the land is reserved or
payable to the lessor

RM10.00

NoteThis duty is in addition to any


duty which may be chargeable under (a),
(b) or (c) above on account of any
specified rent, fine or premium
(e)

In pursuance of a duly stamped


agreement for the same on production of
such agreement to the Commissioner

RM10.00

(f)

In any other case

RM10.00
Exemption

Agricultural Lease or Agreement for Agricultural


Lease for any definite term not exceeding three
years when the rent reserved does not exceed two
hundred ringgit a year.
49A

LEASE OR AGREEMENT FOR LEASE


UNDER THE PRINCIPLES OF AL-IJARAH of
the Syariah law for the purpose of financing or
securing repayment of money.

The same ad valorem


duty as upon a charge
or mortgage for such
total amount.

LETTER OF GUARANTEE

RM10.00

LETTER OF HYPOTHECATION

RM10.00

51

LETTER OF ALLOTMENT AND LETTER OF


RENUNCIATION or any document having the
effect of a letter of allotment of shares in any
company or proposed company or in respect of
any loan raised or proposed to be raised by any
company or proposed company

RM10.00

52

MARKETABLE SECURITY:

50
50A

(a)

Not being a security transferable by

The same ad valorem

96

Laws of Malaysia
delivery, for or in respect of the money
thereby secured

duty according to the


nature of the security
upon a mortgage.

(b)

Being a security transferable by delivery

50 sen for every


RM100 or fractional
part of RM100 of the
nominal value of the
security.

(c)

Transfer, assignment, or disposition of a


marketable security

See Conveyance

53

MEMORANDUM OF ASSOCIATION OF
COMPANY

54

(Deleted by Act 274).

55

(Deleted by Act 274).

56

(Deleted by Act A723).

57

PARTNERSHIP:

58

ACT 378

RM100.00

(a)

Instrument of

..

..

RM10.00

(b)

Dissolution of

..

..

RM10.00

POLICY OF INSURANCE:
(1)

(a)

Policy of Sea Insurance including


time policies or policies for
covering a vessel or her machinery
or
fittings
whilst
under
construction or repair or on trial,
whether the period exceeds twelve
months or not

RM10.00

(b)

For
policies
containing
a
continuation
clause, additional
duty

RM10.00

NOTEWhen a policy of sea insurance is drawn


in a set according to the custom of marine
insurers and one of the set is duly stamped, the
other or others of the set shall, unless issued or in

Stamp

97

some manner negotiated apart from such duly


stamped policy, be exempt from duty; and, upon
proof of the loss or destruction of a duly stamped
policy forming one of a set, any other policy of
the set which has not been issued or in any
manner negotiated apart from such lost or
destroyed policy may although unstamped, be
admitted in evidence to prove the contents of
such lost or destroyed policy.
(2)

FIRE POLICY
For all policies and renewals irrespective
of the sum insured or the term

RM10.00

(3)

ACCIDENT POLICY and policy of


Insurance for any payment agreed to be
made during the sickness of the insured
person or his incapacity from personal
injury, or by way of indemnity against
loss or damage of or to any property of
the insured person.

RM10.00

(4)

LIFE POLICY

RM10.00
Exemption

Where the sum insured does not exceed


RM5,000.
(5)

RE-INSURANCE BY AN INSURANCE
COMPANY which has granted a Policy
of Sea Insurance or a Policy of Fire
Insurance with another Company by way
of indemnity or guarantee, against the
payment on the original insurance of a
certain part of the sum insured thereby
irrespective of the sum insured or the
term

(6)

THIRD PARTY POLICY


(a)

Covering liability of the insured


towards others

(b)

WORKMENS COMPENSATION
(EMPLOYERS LIABILITY):

RM10.00

RM10.00

98

Laws of Malaysia

ACT 378

Policy covering the liability of the


insured to pay compensation to a
workman or employee in regard to
sickness or personal injury
(7)

(8)

RM10.00

COMPREHENSIVE POLICY
Combining any two or more of the
following risksfire, personal injury, or
sickness of the insured, damage, loss,
theft and third party claims

RM10.00

Any other Insurance Policy


specifically provided for

RM10.00

not

General Exemption
Letter of cover or engagement to issue a
policy of insurance:
Provided that unless such letter or
engagement bears the stamp prescribed
by this Act for such policy nothing
shall be claimable thereunder, not shall
it be available for any purpose except
to compel the delivery of the policy
therein mentioned.
59

POWER OR LETTER OF ATTORNEY:

RM10.00

Exemption
For the sole purpose of appointment or
authorizing any person to vote as proxy at a
meeting of a Company or Association
60

61

PROMISSORY NOTE:
(a)

executed in favour of a bank, merchant


bank or borrowing company in Malaysia
approved by the Minister of Finance

RM10.00

(b)

others

RM10.00

PROTEST OF NOTE, that is to say, any


declaration in writing made by a Notary Public,

RM10.00

Stamp

99

or other person lawfully acting as such, attesting


the dishonour of a promissory note
62

(Deleted by Act 274).

63

(Deleted by Act 274).

64

(Deleted by Act 476).

65

RECONVEYANCE OF CHARGED OR
MORTGAGED
PROPERTY,
RE
ASSIGNMENT,
RELEASE, DISCHARGE,
SURRENDER OR RENUNCIATION of any
security or of the benefit thereof or of the money
thereby secured:

66

RELEASE OR RENUNCIATION that is to say,


any instrument whereby a person releases any
property:

Same duty as charge


itself but subject to a
maximum of RM10.00

(a)

If on sale

The same duty as a


conveyance on sale

(b)

If by way of security

The same duty as a


charge or mortgage

(c)

If by way of gift

The same duty as a


conveyance by way of
gift

(d)

In any other case not otherwise specially


charged with duty

RM10.00

67

REVOCATION of Power or Letter of Attorney

The same duty as is


payable on the Power
or Letter of Attorney

68

REVOCATION of any use or trust of any


property by any writing not being a will.

RM10.00

69

SETTLEMENT being an Instrument


Settlement or Agreement for a settlement

of

See section 16 and item


32: Conveyance

70

(Deleted by Act 513).

71

SHARE
WARRANT
CERTIFICATE to bearer

STOCK

RM1.00 for every


RM100 or fractional
part of RM100 of the

OR

100

Laws of Malaysia

ACT 378
nominal value of the
shares
or
stock
specified in the warrant

72

(Deleted by Act 274).

73

SUBSTITUTION UNDER OR IN VIRTUE OF A


POWER OF ATTORNEY and any such instrument
cancelling or varying any such substitution

The same duty as is


payable on the Power
or Letter of Attorney

74

SURRENDER OF CHARGE

See Reconveyance, etc.

75

SURRENDER OF LEASE:
(a)

When the duty with which the lease is


chargeable does not exceed RM10.00

(b)

In any other case

The duty with which


such
lease
is
chargeable
RM10.00

76

TRANSFER

See Conveyance

77

TRUST

See Declaration
Conveyance

78

TRUST RECEIPT granted on the occasion of a


loan or overdraft on goods, if unattested

RM10.00

79

(Deleted by Act 274).

80

(Deleted by Act 274).

and

GENERAL EXEMPTIONS
[Section 35]
1. All instruments of any kind whatsoever, and all counterparts or duplicates of
such instruments, made or executed by or on behalf or in favour of a Ruler of a
State or the Government of Malaysia or of any State, where, but for this exemption,
the Ruler or the Government would be liable to pay the duty chargeable in respect
of such instrument.
The above exemption does not extend to any instrument or writing signed or
executed by any officer as Official Administrator (or, in the case of Sabah, as
Administrator General) or Public Trustee or by a receiver appointed by the Court;
or to any instrument rendered necessary by any written law or order of Court; or to

Stamp

101

a sale made for the recovery of an arrear of revenue or in satisfaction of a decree or


order of Court.
2. Any grant or lease made on behalf of the Government by virtue of the National
Land Code [Act 56 of 1965] or the National Land Code (Penang and Malacca
Titles) Act 1963 [Act 518] or the Land Ordinance of Sabah [Sabah Cap.68] or the
Land Ordinance of Sarawak [Sarawak Cap.81].
3. Any instrument for the sale, transfer or other disposition, either absolutely or
by way of charge or otherwise, of any ship or vessel or any part, interest, share or
property of or in any ship or vessel registered or licensed under the Merchant
Shipping Ordinance 1952 [Ord. 70 of 1952] or under any law for the time being in
force in any part of Malaysia.
4. Any instrument relating exclusively to immovable property situate out of
Malaysia or relating exclusively to things done or to be done out of Malaysia.
5. All instruments relating solely to the business of any society registered under
any written law relating to co-operative societies, and executed by an officer or
member of such society, the duty on which would, but for the exemption hereby
granted, be payable by such officer or member.
6. An instrument executed pursuant to a scheme of financing approved by the
Central Bank, the Labuan Financial Services Authority, the Malaysia Co-operative
Societies Commission or the Securities Commission as a scheme which is in
accordance with the principles of Syariah, where such instrument is an additional
instrument strictly required for the purpose of compliance with those principles but
which will not be required for any other schemes of financing.
7.

(Deleted by Act A723).

8.

(Deleted by Act A723).

9.

(Deleted by Act A723).

10. (Deleted by Act A723).

102

Laws of Malaysia

ACT 378

SECOND SCHEDULE
[Section 7]
PERSONS REQUIRED TO CANCEL ADHESIVE STAMPS
Item

1A

Nature of Instrument and the Item


Number thereto in First Schedule

Persons required to cancel


the adhesive stamp

AGREEMENTNo. 4

The person by whom the


instrument is first executed

AFFIDAVIT,
STATUTORY
DECLARATION, etc. No. 2

The Commissioner for Oaths

(Deleted by Act 476).

(Deleted by Act 476).

(Deleted by Act 274).

CHEQUE (UNLESS COMPOUNDED


FOR)No. 29

See Bill of Exchange

CONTRACT NOTENo. 31

The person by whom the note is


executed

DECLARATION of any use or


trust of or concerning any property
by any writing, not being a will, or
an instrument chargeable with duty
as a settlement executed with
Amanah Raya Bhd.No. 37

Manager or Trust Executive of


Amanah Raya Bhd.

6A

(Deleted by Act 274).

LETTER OF ALLOTMENT
No. 51

The person by whom the letter


is signed

LETTER OF RENUNCIATION
No. 51

The person in whose favour the


letter is executed

10

(Deleted by Act 274).

11

(Deleted by Act 274).

Stamp

103

Item

Nature of Instrument and the Item


Number thereto in First Schedule

Persons required to cancel


the adhesive stamp

12

POLICY OF INSURANCE when


issued out of Malaysia No. 58

13

(Deleted by Act 274).

14

PROMISSORY NOTE when drawn


or made out MalaysiaNo. 60

The first holder in Malaysia

15

PROTEST OF NOTENo. 61

The Notary

16

(Deleted by Act 274).

17

(Deleted by Act 274).

18

REVOCATION OF POWER OF
ATTORNEYNo. 67

The person by whom the


instrument is executed

19

ANY BOND furnished to the


Director General of Immigration in
connection with the grant of any
pass or permit issued under the
Immigration Act 1959/63 [Act 155]

An immigration officer

19A

EMPLOYMENT
CONTRACT
issued
to
the
Immigration
Department for the purpose of
securing a pass

An immigration officer

20

STUDENT LOAN AGREEMENT


for the purpose of pursuing higher
education in colleges or universities
No. 22

The lender

21

(Deleted by Act A723).

22

ARTICLES OF ASSOCIATION
AND
MEMORANDUM
OF
ASSOCIATION OF A COMPANY

The Registrar of Companies

23

Memorandum of Sale

Registrar of High Court

The first holder in Malaysia

104

Laws of Malaysia

ACT 378

THIRD SCHEDULE
[Section 33]
DUTY BY WHOM PAYABLE
Item

Nature of Instrument and the Item Number


thereto in First Schedule

Person liable to pay


Duty

AGREEMENT OR MEMORANDUM
OF AGREEMENTNo. 4

The person by whom the


instrument is first executed

BONDNos. 21, 22, 23 and 25

The obligor or other person


giving the security

CHARGE OR MORTGAGENo. 27

The chargor, mortgagor or


obligor

CONTRACTNo. 30

The person by whom the


instrument is first executed

CONTRACT NOTENo. 31

The person on whose


account the purchase or sale
is made

CONVEYANCENo. 32

The grantee or transferee

(Deleted by Act 274).

ExchangeNo. 43

LEASE OR AGREEMENT
LEASENo. 49:

4A

9
10

The parties in equal shares


FOR

(a)

Lease or agreement

The lessee

(b)

Counterpart

The lessor

(Deleted by Act A723).


RE-CONVEYANCENo. 65

The transferee or assignee or


the person redeeming the
security

Stamp

105

FOURTH SCHEDULE
[Section 83]
REPEAL
No.

Title

Extent of Repeal

F.M.S. Cap. 135

The Stamp Enactment

The whole

Johore Enactment
No. 137

The Stamp Enactment

The whole

Kedah Enactment
No. 114

Enactment No. 114 (Stamps)

The whole in so far as it


relates to stamp duties

Kelantan
Enactment No. 7 of
1937

The Stamp Enactment 1937

The whole

Trengganu
Enactment No. 19
of 1356

The Stamps Enactment

The whole in so far as it


relates to stamp duties

S.S. Cap. 228

The Stamp Ordinance

The whole

B.M.A.
Proclamation
No. 37

The Stamps Proclamation

The whole

B.M.A.
Proclamation
No. 59

The Powers of Attorney


(Stamping) Proclamation

The whole

B.M.A.
Proclamation
No. 66

The Stamp Duties Proclamation

The whole

NOTEThe Stamp Ordinance of Sabah [Sabah Cap. 137] (except section 83), the Stamp Ordinance of
Sarawak [Sarawak Cap. 32] and the Stamp (Unnumbered Shares) Act 1962 [Act 26/62] were repealed by
the Stamp (Amendment and Extension) Act 1989 [Act A723].

106

Laws of Malaysia

ACT 378

FIFTH SCHEDULE
[Subsection 8(1)]
List of instruments on which duty is payable by means of a postal franking
machine or digital franking machine.
16.

(Deleted by P.U. (A) 472/1991)

7.

(Deleted by Act 513)

8.

Transfer of shares in public companies listed on the Bursa Malaysia.

9.

Hire-Purchase Agreement and guarantee thereto.

10.

Letter of indemnity.

11.

Letter of guarantee.

12.

Letter of allotment.

13.

Education loan agreement.

14.

Articles of Association of a company.

15.

Memorandum of Association of a company.

16.

Any other agreement approved by the Collector.

Stamp

107

SIXTH SCHEDULE
[Subsection 15A(3)]
PROVISIONS RELATING TO SUBSIDIARY COMPANIES
PROVISIONS FOR DETERMINING AMOUNT OF CAPITAL HELD
THROUGH OTHER COMPANIES
1. Where, in the case of a number of companies, the first directly owns issued
share capital of the second and the second directly owns issued share capital of the
third, then, for the purposes of this Schedule, the first shall be deemed to own
issued share capital of the third through the second, and, if the third directly owns
issued share capital of a fourth, the first shall be deemed to own issued share capital
of the fourth through the second and the third, and the second shall be deemed to
own issued share capital of the fourth through the third, and so on.
2.

In this Schedule
(a) any number of companies of which the first directly owns issued share
capital of the second and the second directly owns issued share capital
of the third and so on, and, if they are more than three, any three or
more of them, are referred to as a series;
(b) in any series
(i) that company which owns issued share capital of another
through the remainder is referred to as the first owner;
(ii) that other company the issued share capital of which is so
owned is referred to as the last owned company;
(iii) the remainder, if one only, is referred to as an intermediary
or, if more than one, as a chain of intermediaries;
(c) a company in a series which directly owns issued share capital of
another company in the series is referred to as an owner;
(d) any two companies in a series of which one owns issued share capital
of the other directly, and not through one or more of the other
companies in the series, are referred to as being directly related to one
another.

3. Where every owner in a series owns the whole of the issued share capital of the
company to which it is directly related, the first owner shall be deemed to own
through the intermediary or chain of intermediaries the whole of the issued share
capital of the last owned company.

108

Laws of Malaysia

ACT 378

4. Where one of the owners in a series owns a fraction of the issued share capital
of the company to which it is directly related, and every other ownerin the series
owns the whole of the issued share capital of the company to which it is directly
related, the first owner shall be deemed to own that fraction of the issued share
capital of the last owned company through the intermediary or chain of
intermediaries.
5.

Where
(a) each of two or more of the owners in a series owns a fraction, and
every other owner in the series owns the whole, of the issued share
capital of the company to which it is directly related; or
(b) every owner in a series owns a fraction of the issued share capital of
the company to which it is directly related,

the first owner shall be deemed to own through the intermediary or chain of
intermediaries such fraction of the issued share capital of the last owned company
as results from the multiplication of those fractions.
6. Where the first owner in any series owns a fraction of the issued share capital
of the last owned company in that series through the intermediary or chain of
intermediaries in that series, and also owns another fraction or other fractions of the
issued share capital of the last owned company, either
(a) directly;
(b) through an intermediary or intermediaries which is not a member or
are not members of that series;
(c) through a chain or chains of intermediaries of which one or some or all
are not in that series; or
(d) in a case where the series consists of more than three companies,
through an intermediary or intermediaries which is a member or are
members of the series, or through a chain or chains of intermediaries
consisting of some but not all of the companies of which the chain of
intermediaries in the series consists,
then, for the purpose of ascertaining the amount of the issued share capital of the
last owned company owned by the first owner, all those fractions shall be
aggregated and the first owner shall be deemed to own the sum of those fractions.

109
LAWS OF MALAYSIA
ACT 378
STAMP ACT 1949
LIST OF AMENDMENTS
Amending law

Short title

In force from

F.M. Ord. 70/1950

Stamp (Amendment) Ordinance


1950

11-12-1950

F.M. Ord. 15/1953

Stamp (Amendment) Ordinance 1953

30-04-1953

F.M. Ord. 67/1953

Stamp (Amendment) Ordinance 1953

24-12-1953

L.N. 576/1954

NotificationAmendment of First
Schedule

01-01-1955

L.N. 254/1955

NotificationAmendment of First
Schedule

04-05-1955

F.M. Ord. 23/1955

Stamp (Amendment) Ordinance1955

05-12-1949
and
15-06-1955

L.N. 113/1956

Minister of Finance Order 1956s 4

02-04-1956

L.N. 332/1958

Federal Constitution (Modification


of Laws) (Ordinance and
Proclamations) Order 1958

13-11-1958

Act 91

Courts of Judicature Act 1964

16-09-1963

Singapore Act
9/1965

Republic of Singapore Independence


Act 1965

09-08-1965

Act 79/1965

Companies Act 1965 First


Schedule

15-04-1966

Act 5/1967

Stamp Duty (Special Provisions)


(Malaysia) Act 1967

01-04-1967

110

Laws of Malaysia

ACT 378

Amending law

Short title

In force from

Act 60/1967
2 and the First

Stamp (Amendment) Act 1967

All provisions
other than section
Schedule (except
the amendment
of section 80 of
F.M. Ordinance
No. 59 of 1949)
01-04 1967;
Section 2 and the
First Schedule
(except as
aforesaid)
30-09-1967

P.U. (B) 391/1973

Resolution of Dewan Rakyat


amending First Schedule

31-08-1973

P.U. (B) 392/1973

Resolution of Dewan Negara


amending First Schedule

31-08-1973

Act A15

Stamp (Amendment) Act 1969

Not yet
In force

Act A160

Stamp (Amendment) Act 1973

29-02-1973

Act A224

Stamp (Amendment) Act 1974

29-02-1974

Act A408

Stamp (Amendment) Act 1977

02-09-1977

Act 241

Finance Act 1981

Chapter V;
01-01-1981

P.U. (A) 58/1982

Stamp Duty (Amendment) Order 1982

05-03-1982

Act 274

Finance (No. 2) Act 1982

Chapter IV;
01-01-1983

Act 293

Finance Act 1983

Chapter V;
01-01-1984

Act 309

Finance Act 1984

Chapter V;
01-01-1985

Act A587

National Land Code (Amendment) Act


1984

25-03-1985

Stamp

111

Amending law

Short title

In force from

Act A723

Stamp (Amendment and


Extension) Act 1989

01-10-1989;
paragraph 5(b):
01-01-1990

Act 421

Finance (No. 2) Act 1990

Chapter V;
01-01-1990

P.U. (A) 470/1990

Revision of Laws (Stamp Act) Order


1990

02-01-1990

P.U. (A) 40/1991

Stamp Duty (Amendment) Order 1991

01-02-1991

P.U. (A) 472/1991

Stamp Duty (Amendment) (No. 2)


Order 1991

01-01-1992

Act 476

Finance Act 1992

Chapter VI;
01-01-1992

Act 497

Finance Act 1993

Chapter III;
01-01-1993

Act 513

Finance Act 1994

Chapter IV;
01-01-1994

Act 531

Finance Act 1995

Chapter IV;
01-01-1995

Act 544

Finance Act 1996

Chapter V;
01-01-1996
except s. 25:
01-07-1995

Act 578

Finance Act 1998

Chapter V;
01-01-1998

Act 600

Finance Act 2000

Chapter IV;
30-10-1999;
section 20;
16-06-2000;
section 21

Act 608

Finance (No. 2) Act 2000

Chapter V;
01-01-2001

112

Laws of Malaysia

ACT 378

Amending law

Short title

In force from

P.U. (A) 511/2000

Stamp Duty (Amendment) Order 2000

01-01-2001

Act 619

Finance Act 2002

Chapter IV;
01-01-2002

Act 624

Finance (No. 2) Act 2002

Chapter IV;
01-01-2003

Act 639

Finance Act 2004

Chapter V;
11-09-2004

Act 644

Finance Act 2005

s.51, 52, 53, 55


and 56:
01-01-2005;
s.54:
01-01-2006

Act 661

Finance Act 2006

Chapter IV;
02-09-2006

Act 683

Finance Act 2007

Chapter III;
01-01-2008

Act 693

Finance Act 2009

Chapter III,
01-01-2009

Act 702

Finance Act 2010

Chapter III;
01-01-2010

Act A1380

Stamp (Amendment) Act 2010

01-11-2010

Act 719

Finance Act 2011

28-01-2011
First Schedule:
11-02-2010

Act 742

Finance Act 2012

Chapter III;
10-02-2012

Act 755

Finance Act 2013

11-01-2013

113
LAWS OF MALAYSIA
ACT 378
STAMP ACT 1949
LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

L.N. 332/1958
Act 79/1965
Act 60/1967
Act 293
Act 309
Act A723
Act 476
Act 513
Act 608
Act 661
Act 683
Act 693
Act A1380

13-11-1958
15-04-1966
30-09-1967
01-01-1984
01-01-1985
01-10-1989
01-01-1992
01-01-1994
01-01-2001
02-09-2006
01-01-2008
01-01-2009
01-11-2010

Act A723

01-10-1989

3A

Act 60/1967

30-09-1967

Act 309

01-01-1985

5A

Act 241
Act A723
Act 661

01-01-1981
01-10-1989
02-09-2006

F.M. Ord.70/1950
F.M. Ord. 23/1955
L.N. 332/1958
Act A723

11-12-1950
05-12-1949
13-11-1958
01-10-1989;
01-01-1990
01-01-2001
02-09-2006
01-01-2009

Act 608
Act 661
Act 693

114
Section

Laws of Malaysia
Amending authority

ACT 378
In force from

Act 60/1967
Act A408
Act 719
Act 755

30-09-1967
02-09-1977
28-01-2011
11-01-2013

F.M. Ord. 70/1950


Act A723
Act 497
Act 513
Act 608
Act 619
Act 624
Act 661
Act 742
Act 755

11-12-1950
01-10-1989
01-01-1993
01-01-1994
01-01-2001
01-01-2002
01-01-2003
02-09-2006
10-02-2012
11-01-2013

11A

Act 693

01-01-2009

12

Act 60/1967
Act 497
Act 693

30-09-1967
01-01-1993
01-01-2009

12A

Act 60/1967
Act A723
Act 497

01-04-1967
01-10-1989
01-01-1993

13

Act A723

01-10-1989

14A

Act A723

01-10-1989

15

F.M. Ord. 15/1953


Act 79/1965
Act 293
Act A723

30-04-1953
15-04-1966
01-01-1984
01-10-1989

15A

Act A723

01-10-1989

16

Act 60/1967
Act 274

30-09-1967
01-01-1983

17

Act A723

01-10-1989

19

Act 309

01-01-1985

Stamp

115

20

Act 309

01-01-1985

Section

Amending authority

20A

Act 274

01-01-1983

20B

Act 309
Act 531

01-01-1985
01-01-1995

21

F.M. Ord. 70/1950


Act 309
Act A723
Act 644

11-12-1950
01-01-1985
01-10-1989
01-10-2005

27

Act A723

01-10-1989

29

Act 309
Act A723

01-01-1985
01-10-1989

29A

Act 309
Act A723

01-01-1985
01-10-1989

30

Act A723

01-10-1989

32A

Act A723
Act 608

01-10-1989
01-01-2001

33

F.M. Ord. 67/1953


Act A723
Act 608

24-12-1953
01-10-1989
01-01-2001

34

Act A723
Act 476

01-10-1989
01-01-1992

36

Act A723
Act 544
Act 693

01-10-1989
01-01-1996
01-01-2009

36A

Act 683

01-01-2008

36AA

Act A1380

01-11-2010

36B

Act 683
Act A1380

01-01-2008
01-11-2010

36C

Act A1380

01-11-2010

In force from

116
Section

Laws of Malaysia
Amending authority

ACT 378
In force from

37

Act 683
Act 693
Act A1380

01-01-2008
01-01-2009
01-11-2010

38

Act 683
Act A1380

01-01-2008
01-11-2010

38A

Act 619
Act 683
Act A1380

01-01-2002
01-01-2008
01-11-2010

39

Act 619
Act 683

01-01-2002
01-01-2008

40

Act A723
Act 693

01-10-1989
01-01-2009

42

Act 476

01-01-1992

43

Act 476
Act A723
Act 644

01-01-1992
01-10-1989
01-10-2005

44

Act 476
Act A723

01-01-1992
01-10-1989

45

Act 476

01-01-1992

46

Act A723

01-10-1989

47

Act 476
Act A723

01-01-1992
01-10-1989

47A

Act A723
Act 608
Act 619
Act 624

01-10-1989
01-01-2001
01-01-2002
01-01-2003

48

Act A723
Act 693

01-10-1989
01-01-2009

49

Act A723

01-10-1989

Stamp
50A
Section

Act 693
Amending authority

117
01-01-2009
In force from

51

Act A723

01-10-1989

52

Act 60/1967
Act A723

30-09-1967
01-10-1989

53

Act A723

01-10-1989

54

Act 476

01-01-1992

55

Act 578

01-01-1998

57

Act A723
Act 661
Act 693

01-10-1989
02-09-2006
01-01-2009

58

Act A723

01-10-1989

59

Act A723

01-10-1989

59A

Act A723
Act 693

01-10-1989
01-01-2009

60

Act A723

01-10-1989

60A

Act 755

11-01-2013

61

Act A723

01-10-1989

62

Act 476
Act A723

01-01-1992
01-10-1989

63

Act 476
Act A723

01-01-1992
01-10-1989

64

Act A723

01-10-1989

65

Act 476
Act A723

01-01-1992
01-10-1989

66

Act A723

01-10-1989

118
Section

Laws of Malaysia
Amending authority

ACT 378
In force from

67

Act A723

01-10-1989

69

Act A723

01-10-1989

70

Act A723

01-10-1989

71

Act A723

01-10-1989

72

Act A723

01-10-1989

72A

Act 702

01-01-2010

74

Act A723

01-10-1989

74A

Act A1380

01-11-2010

74B

Act A1380

01-11-2010

75

Act A723

01-10-1989

77A

Act 693

01-01-2009

77B

Act 693

01-01-2009

80

L.N. 332/1958
Act 60/1967
Act 513
Act 608
Act 644
Act 661

13-11-1958
01-04-1967
01-01-1994
01-01-2001
01-10-2005
02-09-2006

80A

Act 644

01-01-2006

82

L.N. 332/1958
Act A723
Act 693

13-11-1958
01-10-1989
01-01-2009

82 A

Act 644

01-01-2006

First Schedule

F.M. Ord. 70/1950


L.N. 576/1954
L.N. 254/1955 F.M.
Ord. 23/1955

11-12-1950
01-01-1955
04-05-1955
15-06-1955

Stamp

Section

119

L.N. 332/1958

13-11-1958

Amending authority

In force from

Act 79/1965
P.U. (B) 391/1973
P.U. (B) 392/1973
Act A15
Act A160
Act 274
Act 293
Act 309
Act A723
Act 421
P.U. (A) 470/1990
Act 476
Act 497
Act 513
Act 544
Act 600
Act 608
Act 619
Act 624
Act 639
Act 644
Act 661
Act 693
Act 702
Act 719
Act 742
Act 755

15-04-1966
31-08-1973
31-08-1973
Not yet in force
29-02-1973
01-01-1983
01-01-1984
01-01-1985
01-10-1989
01-01-1990
02-01-1990
01-01-1992
01-01-1993
01-01-1994
01-07-1995
30-10-1999
01-01-2001
01-01-2002
01-01-2003
11-09-2004
01-10-2005
02-09-2006
01-01-2009
01-01-2010
11-02-2010
10-02-2012
11-01-2013

Second Schedule

Act 274
Act A723
Act 476
Act 513
Act 600
P.U. (A) 511/2000
Act 702
Act 742
Act 755

01-01-1983
01-10-1989
01-01-1992
01-01-1994
16-06-2000
01-01-2001
01-01-2010
10-02-2012
11-01-2013

Third Schedule

F.M. Ord. 67/1953


Act A723
Act 274

24-12-1953
01-10-1989
01-01-1983

120
Section

Laws of Malaysia
Amending authority

ACT 378
In force from

Fifth Schedule

Act A408
P.U. (A) 58/1982
P.U. (A) 40/1991
P.U. (A) 472/1991
Act 513
Act 644
Act 719

02-09-1977
05-03-1982
01-02-1991
01-01-1992
01-01-1994
01-10-2005
28-01-2011

Sixth Schedule

Act A723

01-10-1989